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Incentive Systems and The Implementation of Management Science: A Spare Parts Application

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  • Alan C. Shapiro

    (The Wharton School, University of Pennsylvania)

Abstract

The application of operations research models to solve a variety of management problems has enjoyed striking success over the past three decades. However, a disconcerting note has long been apparent to most practitioners. While the mathematical techniques of management scientists have been expanding rapidly, their influence on corporate decision-making has not kept pace.This paper will illustrate an often overlooked reason for the lack of acceptance of operations research models using a case study application of inventory theory. The overlooked reason is that, quite often, the model and the manager have different (and possibly conflicting) goals. In such a situation, the model is likely to be either rejected or misused.

Suggested Citation

  • Alan C. Shapiro, 1976. "Incentive Systems and The Implementation of Management Science: A Spare Parts Application," Interfaces, INFORMS, vol. 7(1), pages 14-17, November.
    • Handle: RePEc:inm:orinte:v:7:y:1976:i:1:p:14-17
    DOI: 10.1287/inte.7.1.14
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