Fairness ideals in inventory allocation

We study fairness ideals in distribution systems where inventory is allocated to multiple retailers and there supply–demand mismatch. In particular, we focus on (a) what considered fair allocation by (e.g., equal profit, same fill rate, share of mismatch?) (b) how the supply chain context affects perceptions. consider an integrated setting total at retail level may face either shortage or surplus, a disintegrated scarcity when demand exceeds available inventory. Our experimental data suggest that subjects, taking role chain, are often motivated considerations: they claim for themselves not exactly their needs more than one-third instances. Across settings, “fair” allocations depend demands rather profit comparisons, even these facilitated decision support tool. However, cases most prevalent ideal split inventory–demand mismatch, while shortage, rates. Follow-up experiments under both surplus likely evaluate as it based realized demands, this independent whether was determined rule human maker.