Key result
The newsvendor problem task significantly activated the dorsolateral and orbitofrontal cortices, with high-risk scenarios specifically deactivating the right dorsolateral prefrontal cortex.
Why the study?
Although brain hemodynamic responses to decision-making under risk have been reported, inventory management scenarios such as the newsvendor problem had not been investigated using neuroimaging.
Does the newsvendor problem decision-making task alter cerebral hemodynamics and network properties in the prefrontal cortex of healthy subjects?
RCT (n=27)
Randomly assigned to two experimental groups (High-profit margin or Low-profit margin)
No
Does the newsvendor problem decision-making task alter cerebral hemodynamics and network properties in the prefrontal cortex of healthy subjects?
The newsvendor problem decision-making task significantly alters cerebral hemodynamics and increases local brain network properties in the prefrontal cortex.
Answers are grounded in this paper and cite their sources.
First neuroimaging of newsvendor decisions; leaves open whether DLPFC/OFC activation informs operational practice.
While many publications have reported brain hemodynamic responses to decision-making under various conditions of risk, no inventory management scenarios, such as the newsvendor problem (NP), have been investigated in conjunction with neuroimaging. In this study, we hypothesized (I) that NP stimulates the dorsolateral prefrontal cortex (DLPFC) and the orbitofrontal cortex (OFC) joined with frontal polar area (FPA) significantly in the human brain, and (II) that local brain network properties are increased when a person transits from rest to the NP decision-making phase. A 77-channel functional near infrared spectroscopy (fNIRS) system with wide field-of-view (FOV) was employed to measure frontal cerebral hemodynamics in response to NP in 27 healthy human subjects. NP-induced changes in oxy-hemoglobin concentration, Δ[HbO], were investigated using a general linear model (GLM) and graph theory analysis (GTA). Significant activation induced by NP was shown in both DLPFC and OFC+FPA across all subjects. Specifically, higher risk NP with low-profit margins (LM) activated left-DLPFC but deactivated right-DLPFC in 14 subjects, while lower risk NP with high-profit margins (HM) stimulated both DLPFC and OFC+FPA in 13 subjects. The local efficiency, clustering coefficient, and path length of the network metrics were significantly enhanced under NP decision making. In summary, multi-channel fNIRS enabled us to identify DLPFC and OFC+FPA as key cortical regions of brain activations when subjects were making inventory-management risk decisions. We demonstrated that challenging NP resulted in the deactivation within right-DLPFC due to higher levels of stress. Also, local brain network properties were increased when a person transitioned from the rest phase to the NP decision-making phase.
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Wanniarachchi et al. (2021) conducted an RCT in Healthy volunteers (n=27). Newsvendor Problem (NP) decision-making task vs. Resting baseline and High-profit margin (HM) task was evaluated on Changes in oxy-hemoglobin concentration (Δ[HbO]) in the prefrontal cortex (p=<0.05). The newsvendor problem task significantly activated the dorsolateral and orbitofrontal cortices, with high-risk scenarios specifically deactivating the right dorsolateral prefrontal cortex.
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