Entropy-Based Analysis and Quantification of Supply Chain Recoverability

The problem of designing resilient supply chains at the semantic network level is considered. The entropy method is used to show the interrelations between supply chain design and recoverability. Easy-to-compute quantitative measures are proposed to estimate supply chain recoverability. For the first time, entropy-based supply chain analysis is brought into correspondence with supply chain structural recoverability and flexibility considerations downstream the supply chain. An exact and a heuristic computation algorithm are suggested and illustrated. The developed approach and recoverability measure can be used to select a resilient supply chain design in terms of potential recoverability.