A Method of Supply Chain Evaluation Based on the Structure of an Information Network

Abstract

A supply chain is a system consisting of different entities, which add value from the original resources to the final products for customers. Although each entity is indispensable for the construction of a supply chain, the degree of importance of each entity varies depending on the role played in the supply chain. In this paper, we assume that the information produced by the entity that plays a more important role should be referred to more by other entities when making appropriate decisions to effectively operate the entire supply chain. Thus, we developed a method that evaluates the soundness of the supply chain based on the structure of its information network. In the method, the structure of the supply chain information network is expressed in a square matrix A. The eigenvector R of the matrix A is assumed as the rate of its own information referred to by other entities in the supply chain. The value of information produced by each entity is represented as a vector V determined by using AHP. Then, the method evaluates the soundness of the supply chain as the norm between R and V. In addition, a design method to search for the ideal structure of the information network is presented. The effectiveness of the proposed method is examined by using simple supply chain models.