Title: On Information Entropy of Inventory System in Supply Chain
Abstract: Due to the uncertainty of supply and demand,the complicated structure of the supply chain and the bullwhip effect and anti-bullwhip effect,various uncertainties exist in the inventory system,i.e.the entropy in the inventory system of supply chain.This paper studies the information entropy of inventory system in supply chain under bullwhip effect and anti-bullwhip effect,and does some simulations,the results of which indicate that the inventory system acts as an amplifier of information entropy in a simple supply chain system,while the inventory system of manufacturers acts as a leap implement of information entropy in the manufacturer-centered supply chain system.Finally the effective strategies of reducing entropy are given,such as adopting VMI or JMI mode,creating various information system,combining pushing mode with pulling mode supply chain,integrating electronic commerce mode with traditional distribution mode,and setting up a information center in the supply chain system.
Publication Year: 2007
Publication Date: 2007-01-01
Language: en
Type: article
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Cited By Count: 1
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