Using Information-theoretic Principles to Analyze and Evaluate Complex Adaptive Supply Network Architectures

Information-theoretic principles can be applied to the study of complex adaptive supply networks (CASN). Previous modeling efforts of CASN were impeded by the complex, dynamic nature of the systems. However, information theory provides a model-free approach to the problem removing many of those barriers. Understanding how principles such as transfer entropy, excess entropy/predictive information, information storage, and separable information apply in the context of supply networks opens up new ways of studying these complex systems. Additionally, these principles provide the potential for new business analytics which give managers of CASN new insights into the system's health, behavior, and eventual control strategies.