Application Of Information Entropy In Coordination Complexity Supply Chain

Entropy has already gradually develop to become a synthetic system which has own theories,thoughts,and methods from a energetics concept one hundred years ago .The application of entropy theory in the supply chain management is in accordance with the feathers of them. Entropy is a good tool in the indeterminacy study. And we should put across the supply chain management under the circumstance of dynamic and incertitude condition.This paper research the complexity or uncertainty of the supply chain management from the point of entropy . Its main results as follow:(1) Measuring the complexity of agile supply chain through Dynamic Entropy. Agile supply chain(ASC) is a kind of enterprise operating mode, which enables enterprise to rapidly response to market changes and belongs to the category of the open complex giant system. This paper proposes a method of dynamic entropy, which is different from the hall for workshop of metasynthetic engineering, to study the management problem of agile supply chain, and models the complexity of each enterprise in the supply chain and its shift. The paper provides a new approach for discussing the management problem of agile supply chain. An example is given to show how the model works.(2) Study of the complexity of system based on generalized-relating-degree coefficient. A method of generalized-relating-degree coefficient is presented to measure statistical correlation in complex system, The proposed method is applied to the supply chain and the model of decision-making. The method does not need specific sample data, which reduces data uncertainty and computation quantity. It can be applied to linear and nonlinear problems. Also,it simplifies the classification of complex systems due to the reduction of classification criterions. Moreover, it can describe the relation among variables or sub-systems of system quantitatively.(3) A New Algorithm for solving continuous stochastic decision-making problem. This paper ,based on the Kullback's entropy definition,applies the maximum entropy principle to transform the decision-making under uncertainty and with continuous stochastic variable space to the risky decision-making,which makes the former can be solved.(4) Expected-profit-entropy is applied in coordination supply chain. This paper proposes a new concept of Expected-profit-entropy from uncertainty and resultant value of the objective .Expected-profit-entropy is defined and contracted .It also expounds the reasonability of Expected-profit-entropy and Expected-profit-entropy as the uncertainty measure of the object state and decision action. Expected-profit-entropy is applied to measure the uncertainty of ordering's excessive and shortage,which improves the retailer's decision-making level. We verify numerically that: Considering the Profit Maximization and Expected-profit-entropy minimization can get better policy than only considering the Profit Maximization Rule. It is benefic to the whole chain, retailer and supplyer.At the last of the paper, the main conclusions are summarized and the prospect of the research is given.