Fuzzy entropy method for quantifying supply chain networks complexity

Abstract

Supply chain is a special kind of complex network. Its complexity and uncertainty makes it very difficult to control and manage. Supply chains are faced with a rising complexity of products, structures, and processes. Because of the strong link between a supply chain's complexity and its efficiency the supply chain complexity management becomes a major challenge of today's business management. The aim of this paper is to quantify the complexity and organization level of an industrial network working towards the development of a 'Supply Chain Network Analysis' (SCNA). By measuring flows of goods and interaction costs between different sectors of activity within the supply chain borders, a network of flows is built and successively investigated by network analysis. The result of this study shows that our approach can provide an interesting conceptual perspective in which the modern supply network can be framed, and that network analysis can handle these issues in practice. © 2009 ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering.