Operational Complexity of Supplier-Customer Systems Measured by Entropy - Case Studies

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23510%2F16%3A43928737" target="_blank" >RIV/49777513:23510/16:43928737 - isvavai.cz</a>

Result on the web

<a href="http://www.mdpi.com/1099-4300/18/4/137" target="_blank" >http://www.mdpi.com/1099-4300/18/4/137</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/e18040137" target="_blank" >10.3390/e18040137</a>

Result language

angličtina

Original language name

Operational Complexity of Supplier-Customer Systems Measured by Entropy - Case Studies

Original language description

This paper discusses a unified entropy-based approach for the quantitative measurement of operational complexity of company supplier-customer relations. Classical Shannon entropy is utilized. Beside this quantification tool, we also explore the relations between Shannon entropy and (c,d)-entropy in more details. An analytic description of so called iso-quant curves is given, too. We present five case studies, albeit in an anonymous setting, describing various details of general procedures for measuring the operational complexity of supplier-customer systems. In general, we assume a problem-oriented database exists, which contains detailed records of all product forecasts, orders and deliveries both in quantity and time, scheduled and realized, too. Data processing detects important flow variations both in volumes and times, e.g., order-forecast, delivery-order, and actual production-scheduled one. The unifying quantity used for entropy computation is the time gap between actual delivery time and order issue time, which is nothing else but a lead time in inventory control models. After data consistency checks, histograms and empirical distribution functions are constructed. Finally, the entropy, information-theoretic measure of supplier-customer operational complexity, is calculated. Basic steps of the algorithm are mentioned briefly, too. Results of supplier-customer system analysis from selected Czech small and medium-sized enterprises (SMEs) are presented in various computational and managerial decision making details. An enterprise is ranked as SME one, if it has at most 250 employees and its turnover does not exceed 50 million USD per year, or its balance sheet total does not exceed 43 million USD per year, alternatively.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

BB - Applied statistics, operational research

OECD FORD branch

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Project

<a href="/en/project/GA15-20405S" target="_blank" >GA15-20405S: Modelling of processes on financial markets and prediction of firm default by real options</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Entropy

ISSN

1099-4300

e-ISSN

—

Volume of the periodical

18

Issue of the periodical within the volume

4

Country of publishing house

CH - SWITZERLAND

Number of pages

17

Pages from-to

1-17

UT code for WoS article

000375208200034

EID of the result in the Scopus database

2-s2.0-84964474660