IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i13p5568-d1425295.html
   My bibliography  Save this article

The Impact of Information Distortions on Decision-Making: A Case Study in Land–Sea Transport Chain Planning

Author

Listed:
  • Adam Torok

    (Faculty of Transportation Engineering and Vehicle Engineering, Budapest University of Technology and Economics, Műegyetem rkp. 3, 1111 Budapest, Hungary
    Department for Logistics, KTI—National Institute for Transport Sciences, Than Karoly Str. 3-5, 1119 Budapest, Hungary)

  • Iouri Semenov

    (Faculty of Economics in Szczecin, WSB Merito University in Poznan, 5 Powstancow Wielkopolskich Str., 61895 Poznan, Poland)

  • Ludmiła Filina-Dawidowicz

    (Faculty of Maritime Technology and Transport, West Pomeranian University of Technology in Szczecin, Ave. Piastów 41, 71065 Szczecin, Poland)

  • Wojciech Durczak

    (Faculty of Maritime Technology and Transport, West Pomeranian University of Technology in Szczecin, Ave. Piastów 41, 71065 Szczecin, Poland
    Maritime Office in Szczecin, 4 Stefana Batorego Sqr., 70207 Szczecin, Poland)

Abstract

Management based on reliable, complete, and up-to-date information is key to increasing a transport chain’s effectiveness and sustainability. The instability of the business environment and the increase in competition have contributed to the growth of challenges faced by managers of transport and logistics companies who make decisions using low-value information exposed to significant distortions. This article aims to investigate the impact of information distortions on decision-making quality and to determine the probability of making trustworthy decisions in freight land–sea transport chain planning. The research was carried out in several stages, which included the formulation of rules for detecting information distortions, as well as distortion clustering and evaluation of their impact on decision quality. A methodology to assess the probability of making trustworthy decisions was developed. It was shown that information value directly impacts the quality of decisions related to transport chain planning for both traditional and unique/occasional freight. In the case of significant information distortion, the manager’s ability to assess available information considerably increases, especially in crises, when the lack of time to verify information threatens the accuracy of decisions. This study’s results may be useful for transport and logistics companies’ managers, who make decisions using information obtained from various sources.

Suggested Citation

  • Adam Torok & Iouri Semenov & Ludmiła Filina-Dawidowicz & Wojciech Durczak, 2024. "The Impact of Information Distortions on Decision-Making: A Case Study in Land–Sea Transport Chain Planning," Sustainability, MDPI, vol. 16(13), pages 1-21, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5568-:d:1425295
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/13/5568/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/13/5568/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Agnieszka A. Tubis, 2023. "Digital Maturity Assessment Model for the Organizational and Process Dimensions," Sustainability, MDPI, vol. 15(20), pages 1-24, October.
    2. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
    3. Zheng, Shiyuan & Wang, Kun & Chan, Felix T.S. & Fu, Xiaowen & Li, Zhi-Chun, 2022. "Subsidy on transport adaptation investment-modeling decisions under incomplete information and ambiguity," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 103-129.
    4. Lina Tang & Taho Yang & Yiliu Tu & Yizhong Ma, 2021. "Supply chain information sharing under consideration of bullwhip effect and system robustness," Flexible Services and Manufacturing Journal, Springer, vol. 33(2), pages 337-380, June.
    5. Mohammadali Vosooghidizaji & Atour Taghipour & Béatrice Canel-Depitre, 2020. "Supply chain coordination under information asymmetry: a review," International Journal of Production Research, Taylor & Francis Journals, vol. 58(6), pages 1805-1834, March.
    6. Chen, Jing & Pun, Hubert & Zhang, Qiao, 2023. "Eliminate demand information disadvantage in a supplier encroachment supply chain with information acquisition," European Journal of Operational Research, Elsevier, vol. 305(2), pages 659-673.
    7. Bin Shen & Tsan-Ming Choi & Stefan Minner, 2019. "A review on supply chain contracting with information considerations: information updating and information asymmetry," International Journal of Production Research, Taylor & Francis Journals, vol. 57(15-16), pages 4898-4936, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dimitris Zissis, 2023. "Information sharing through digitalisation in decentralised supply chains," Annals of Operations Research, Springer, vol. 327(2), pages 763-778, August.
    2. Chen, Jing & Pun, Hubert & Zhang, Qiao, 2023. "Eliminate demand information disadvantage in a supplier encroachment supply chain with information acquisition," European Journal of Operational Research, Elsevier, vol. 305(2), pages 659-673.
    3. Cai, Jianhu & Sun, Haining & Shang, Jennifer & Hegde, Gajanan G., 2023. "Information structure selection in a green supply chain: Impacts of wholesale price and greenness level," European Journal of Operational Research, Elsevier, vol. 306(1), pages 34-46.
    4. Pastore, Erica & Alfieri, Arianna & Zotteri, Giulio, 2019. "An empirical investigation on the antecedents of the bullwhip effect: Evidence from the spare parts industry," International Journal of Production Economics, Elsevier, vol. 209(C), pages 121-133.
    5. Ewerhart, Christian & Cassola, Nuno & Valla, Natacha, 2012. "Overbidding in fixed rate tenders: The role of exposure risk," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 539-549.
    6. Hu, Li & Ma, Hoi-Lam & Wang, Li & Liu, Yang, 2023. "Hiding or disclosing? Information discrimination in member-only discounts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    7. Towill, Denis R. & Zhou, Li & Disney, Stephen M., 2007. "Reducing the bullwhip effect: Looking through the appropriate lens," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 444-453, July.
    8. Nathan Craig & Nicole DeHoratius & Ananth Raman, 2016. "The Impact of Supplier Inventory Service Level on Retailer Demand," Manufacturing & Service Operations Management, INFORMS, vol. 18(4), pages 461-474, October.
    9. Baron, Opher & Callen, Jeffrey L. & Segal, Dan, 2023. "Does the bullwhip matter economically? A cross-sectional firm-level analysis," International Journal of Production Economics, Elsevier, vol. 259(C).
    10. Elcio Mendonça Tachizawa & Cristina Giménez, 2005. "Drivers and sources of supply flexibility: An exploratory study," Economics Working Papers 889, Department of Economics and Business, Universitat Pompeu Fabra.
    11. Chacha, Peter Wankuru & Kirui, Benard Kipyegon & Wiedemann, Verena, 2024. "Supply Chains in Times of Crisis: Evidence from Kenya’s Production Network," World Development, Elsevier, vol. 173(C).
    12. Bin Li & Onur Boyabatlı & Buket Avcı, 2023. "The Impact of Commodity Price Uncertainty on the Economic Value of Waste-to-Energy Conversion in Agricultural Processing," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 16(3-4), pages 229-249, July.
    13. Kull, Thomas & Closs, David, 2008. "The risk of second-tier supplier failures in serial supply chains: Implications for order policies and distributor autonomy," European Journal of Operational Research, Elsevier, vol. 186(3), pages 1158-1174, May.
    14. Sohn, So Young & Lim, Michael, 2008. "The effect of forecasting and information sharing in SCM for multi-generation products," European Journal of Operational Research, Elsevier, vol. 186(1), pages 276-287, April.
    15. Ma, Yungao & Wang, Nengmin & He, Zhengwen & Lu, Jizhou & Liang, Huigang, 2015. "Analysis of the bullwhip effect in two parallel supply chains with interacting price-sensitive demands," European Journal of Operational Research, Elsevier, vol. 243(3), pages 815-825.
    16. Yingying Xin & Xiao Zeng & Zhengying Luo, 2022. "Customers' tone in MD&A disclosure and suppliers' inventory efficiency: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3833-3853, December.
    17. Nurmilaakso, Juha-Miikka, 2008. "Adoption of e-business functions and migration from EDI-based to XML-based e-business frameworks in supply chain integration," International Journal of Production Economics, Elsevier, vol. 113(2), pages 721-733, June.
    18. Jessica L. Darby & David J. Ketchen & Brent D. Williams & Travis Tokar, 2020. "The Implications of Firm‐Specific Policy Risk, Policy Uncertainty, and Industry Factors for Inventory: A Resource Dependence Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 3-24, October.
    19. Rich, Karl M. & Ross, R. Brent & Baker, A. Derek & Negassa, Asfaw, 2011. "Quantifying value chain analysis in the context of livestock systems in developing countries," Food Policy, Elsevier, vol. 36(2), pages 214-222, April.
    20. Ananth V. Iyer & Apurva Jain, 2003. "The Logistics Impact of a Mixture of Order-Streams in a Manufacturer-Retailer System," Management Science, INFORMS, vol. 49(7), pages 890-906, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5568-:d:1425295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.