Entropy as a measure of delayed differentiation

Abstract

Abstract In the new market conditions, the importance of handling variety is ever increasing. The challenge lies in managing this variety with minimum cost and in shortest time. This paper studies the various strategies employed to mange such a challenge. It studies in specific the concept of delayed differentiation A study of entropy's application in the field of operations to define flexibility is done. This concept is further extended to measure delayed differentiation. The new measure introduced not only considers the build of variety but also the build of uncertainty in the system and hence provides a more comprehensive measure for managerial decisions. Future of Inventory management in Retail Chains