Advances on measuring the operational complexity of supplier–customer systems

Efstathiou, Janet, Sivadasan, Suja, Calinescu, Ani and Huaccho Huatuco, Luisa (2006) Advances on measuring the operational complexity of supplier–customer systems. European Journal of Operational Research, 171 (1). pp. 208-226.

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.

Item Type: Article
Keywords: Supply chain management; Supplier–customer system; Information-theory; Operational complexity
Subject(s): Complexity
Project management
Operations management
Centre: CABDyN Complexity Centre
BT Centre for Major Programme Management
Faculty of Operations Management
Date Deposited: 21 Feb 2012 20:06
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/2978

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