Entropy assessment of supply chain disruption

Purpose – Manufacturing organizations and networks are heavily dependent on the flow of information within and across organization boundaries. A disruption in information flow might interrupt the operations of the organization and make management even more difficult. The purpose of this paper is to incorporate information theory approach to investigate the perturbation introduced into a manufacturing organization as a result of disruption in the flow of critical information needed in manufacturing operations.Design/methodology/approach – This study proposes the use of entropy theory to assess the level of risk introduced by different sources of perturbation into the material flow stream and the use of discrete event simulation to investigate the impact of the resulting disruption on collaborating members.Findings – The result of the analysis carried out on the effect of system failure on supply chain performance revealed that the retailer experiences the most uncertainty in the supply chain while the hold...

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