The Best Inventory Policy against Supply Disruption in Supply Chain: Integration of Entropy SHANON and TOPSIS

Ali Mohaghar, Moein Hajimaghsoudi


The objective of this paper is to develop a decision model to select the best inventory policy against supply disruption in supply chain. Since 9/11, managers are more aware of the vulnerability of their supply-chain but most of them are still confused on the way to manage risk disruptions. In this paper key performance indicator (KPI) are criteria and policies are alternatives. Entropy SHANON and TOPSIS are used in the integrated approach. Entropy SHANON is used to determine the weights of criteria because it can effectively determine various criteria’s weights in a hierarchical structure. TOPSIS aims to rank policies with respect to the criteria. We apply the integrated approach in real case to demonstrate the application of the proposed method.

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