Modelling Human Behaviour in Newsvendor Game

The production systems are made up of technologies, organizational styles, managementmodels and, above all, individuals. The human contribution in operations management is particularlycritical because it has a significant effect on the outcomes and it is difficult to predict. The literaturereview shows that, even in simplified operating conditions, such as those represented by the famousproblem of newsvendor and in conditions of complete information, the behavior of human managersdeviates considerably from the optimal. The literature review also shows that, although the concept ofbounded rationality is now well established, the modeling of human behavior is still incomplete, oftenlimited to the verification of a single type of bias without considering their simultaneous presence. Thisstudy, based on the results obtained from controlled human experiments on newsvendor game, proposes adecision-making model that takes into account more than just one bias and is based on the heuristics of anchoring and adjustment. The model shows a promising capacity to reveal the individual's behavior.