On the role of trust types and levels on inventory replenishment decision

Using a participatory simulation platform, this paper investigates the inventory replenishment decisions made under different trust categories. Depending on the type of trust (trust in supplier versus trust in customer) and level of trust (high versus low), each decision is categorized and analyzed. We investigate how the inventory manager`s ordering behavior varies regarding their type and level of trust. This study provides evidence for the role of trust in inventory replenishment decision. The findings on the influence of trust on inventory decision indicators provide a new perspective in respect to the supply chain management literature, which generally postulates a positive influence of trust on supply chain stability and uncertainty reduction.