The Challenged Decision Maker

In fact, even with such a brain, supply management professionals might be unable to exercise complete rationality in anticipating and managing risk. Simon (1976) enumerated three perspectives to describe failures in objective rationaUty  

1) Rationality requires a complete knowledge and anticipation of the consequences that will follow on each choice. In fact, knowledge of consequences is always fragmentary. 

2) Since these consequences he in the future, imagination must supply the lack of experienced feeling in attaching value to them. But values can be only imperfectly anticipated. 

3) Rationality requires a choice among all possible alternative behaviors. In actual behavior, only a very few of all these possible alternatives ever come to mind (p. 81). 

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