Advances on Measuring the Operational Complexity of Supplier-Customer Systems

Suja Sivadasan; Janet Efstathiou; Anisoara Calinescu; Luisa Delfa Huaccho Huatuco

doi:10.1016/j.ejor.2004.08.032

Advances on Measuring the Operational Complexity of Supplier-Customer Systems

Suja Sivadasan, Janet Efstathiou, Anisoara Calinescu, Luisa Delfa Huaccho Huatuco

Management

Research output: Contribution to journal › Article › peer-review

Abstract

Even structurally simple supplier–customer systems can be operationally complex. This operational complexity can be colloquially defined as the uncertainty associated with managing the dynamic variations, in time or quantity, across information and material flows at the supplier–customer interface. This paper proposes a means of measuring the information demands placed on supplier–customer systems, as a result of this uncertainty.

This paper mathematically models the operational complexity of supplier–customer systems from an information-theoretic perspective. A unique feature of this measure is that it captures, in relative terms, the expected amount of information required to describe the state of the system. The measure provides flexibility in the scope and detail of analysis, while at the same time allowing a systematic hierarchical approach.

The application of the measure allows valuable insights to be obtained in terms of the degree of uncertainty, level of control and the detail of monitoring required to manage the operational complexity of supplier–customer systems.

Original language	English
Pages (from-to)	208-226
Journal	European Journal of Operational Research
Volume	171
Issue number	1
DOIs	https://doi.org/10.1016/j.ejor.2004.08.032
Publication status	Published - 2006

Keywords

supply chain management
Supplier-customer system
Information-theory
operational complexity

Access to Document

10.1016/j.ejor.2004.08.032

Cite this

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title = "Advances on Measuring the Operational Complexity of Supplier-Customer Systems",

abstract = "Even structurally simple supplier–customer systems can be operationally complex. This operational complexity can be colloquially defined as the uncertainty associated with managing the dynamic variations, in time or quantity, across information and material flows at the supplier–customer interface. This paper proposes a means of measuring the information demands placed on supplier–customer systems, as a result of this uncertainty.This paper mathematically models the operational complexity of supplier–customer systems from an information-theoretic perspective. A unique feature of this measure is that it captures, in relative terms, the expected amount of information required to describe the state of the system. The measure provides flexibility in the scope and detail of analysis, while at the same time allowing a systematic hierarchical approach.The application of the measure allows valuable insights to be obtained in terms of the degree of uncertainty, level of control and the detail of monitoring required to manage the operational complexity of supplier–customer systems.",

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T1 - Advances on Measuring the Operational Complexity of Supplier-Customer Systems

AU - Sivadasan, Suja

AU - Efstathiou, Janet

AU - Calinescu, Anisoara

AU - Huaccho Huatuco, Luisa Delfa

PY - 2006

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AB - Even structurally simple supplier–customer systems can be operationally complex. This operational complexity can be colloquially defined as the uncertainty associated with managing the dynamic variations, in time or quantity, across information and material flows at the supplier–customer interface. This paper proposes a means of measuring the information demands placed on supplier–customer systems, as a result of this uncertainty.This paper mathematically models the operational complexity of supplier–customer systems from an information-theoretic perspective. A unique feature of this measure is that it captures, in relative terms, the expected amount of information required to describe the state of the system. The measure provides flexibility in the scope and detail of analysis, while at the same time allowing a systematic hierarchical approach.The application of the measure allows valuable insights to be obtained in terms of the degree of uncertainty, level of control and the detail of monitoring required to manage the operational complexity of supplier–customer systems.

KW - supply chain management

KW - Supplier-customer system

KW - Information-theory

KW - operational complexity

U2 - 10.1016/j.ejor.2004.08.032

DO - 10.1016/j.ejor.2004.08.032

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