A Behavioral Economics Perspective on Sustainable Inventory Management

Sustainable inventory management has become an essential element of corporate competitiveness under the constraints of global resource scarcity, environmental concerns, and volatile market demands. Traditional inventory optimization methods, while effective in cost minimization, often overlook the behavioral biases of decision-makers that influence ordering, stocking, and disposal decisions. This paper integrates behavioral economics with sustainable inventory management to develop a multi-dimensional framework that incorporates economic, environmental, and behavioral objectives. Drawing on case analyses from financial institutions, manufacturing firms, and supply chain service providers in China, this study demonstrates how loss aversion, anchoring, status quo bias, and present bias affect inventory decisions, and proposes “nudge” strategies to promote sustainable outcomes. Findings suggest that aligning behavioral incentives with sustainable practices—such as default green procurement, transparent carbon footprint reporting, and reward-penalty mechanisms—can significantly enhance cost efficiency, resource utilization, and environmental performance.