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PurposeThe purpose of this paper is to investigate how management attention and supply chain complexity affect the decision-making process and cost estimation accuracy of supply chain design (SCD) decisions.Design/methodology/approachThe research follows an embedded case study design. Through the lens of the behavioural theory of the firm, the SCD decision process and realised outcomes are investigated through longitudinal data collection across ten embedded cases with varying degrees of supply chain decision-making complexity and management attention.FindingsThe findings suggest that as supply chain decision-making complexity increases, cost estimation accuracy decreases. The extent to which supply chain decision-making complexity is readily recognised influences the selection of strategies for information search and analysis and, thus, impacts resulting cost estimation errors. The paper further shows the importance of management attention for cost estimation accuracy, especially management attention based on conflicting goals induce behaviours that improve estimation ability.Research limitations/implicationsA framework proposing a balance between supply chain decision-making complexity and management attention in SCD decisions is proposed. However, as an embedded case study the research would benefit from replication to externally validate results.Originality/valueThe method used in this study can identify how supply chain complexity is related to cost estimation errors and how management attention is associated with behaviours that improve cost estimation accuracy, indicating the importance of management attention in complex supply chain decision-making.

Purpose
Significant transitions in firms (e.g. outsourcing) may impact the relative importance of production and inventory assets, affecting the hierarchical separation of planning decisions. The purpose of this paper is to contribute to planning literature by investigating how the production system and the planning environment influence the performance difference between hierarchical and monolithic planning. Further, it seeks to reduce the prevailing theory-practice gap in tactical planning.


Design/methodology/approach
Through an action research study, a monolithic model integrating tactical production planning decisions, subject to upstream supply chain constraints, with strategic investments decisions was developed, tested and implemented in a global OEM. Using the developed model and a measure of the capital cost of production assets relative to the cost of holding inventory, it is numerically examined how the production system and planning environment influence the performance of hierarchical and monolithic planning.


Findings
The research demonstrates the potential of integrating decisions and reveals significant performance differences between hierarchical and monolithic planning for firms with low capital cost relative to inventory holding cost.


Research limitations/implications
The findings suggest a fit between planning processes, the production system and planning environment. Future research should empirically validate the findings and propositions.


Originality/value
The paper combine capital investments and production planning decisions, which usually transpire at different hierarchical levels and on different time-horizons, and investigates the consequences of hierarchical separation through a real-life validated case and numerical analysis.