Entropy-based model for the ripple effect: managing environmental risks in supply chains
针对供应链中的环境风险，提出基于熵的优化模型，通过简化供应链层级结构来评估涟漪效应造成的经济损失，帮助管理者识别和缓解风险。
Due to increasing diversity and growing size of modern industrial supply chains, today problems of identification, assessment and mitigation of disruption risks become challenging goals of the supply chain risk management. In this paper, we focus on environmental (ecological) risks in supply chains which represent threats of adverse effects on living organisms, facilities and environment by effluents, emissions, wastes, resource depletion, etc. arising due to supply chain’s activities. Harmful environmental disruptions may ripple through the supply chain components like a wave. The paper presents the entropy-based optimisation model for reducing the supply chain model size and assessing the economic loss caused by the environmental risks subject to the ripple effect. A main advantage of the suggested entropy-based approach is that it permits to essentially simplify the hierarchical tree-like model of the supply chain, at the same time retaining the basic knowledge about main risk sources.