The Impact of Panic Buying on Inventory Logistics

Abstract

This paper investigates the impact of panic buying on consumer and organizational inventory logistics due to the limited body of research in organizational behavior and logistics. Goldratt’s Theory of Constraints is the primary theoretical model and is coalesced with organizational psychology exploring the link to panic buying and decision making. A new statistical model examining the relationship between participants’ feelings of nervousness about product shortages and panic buying was established and tested. The purpose of this new statistical model was to explore these implicit phenomena from an organizational psychology lens where few statistical models exist. Findings include panic buying during uncertain times as an unrealized constraint in operations management.