eBulletin - Alan Dix (vfridge limited, aQtive limited and Lancaster University)

diversity density

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abstract
If one looks through the supply chain from kitchen cupboard to factory, the diversity of goods reduces. Diversity density is a measure of this reduction and corresponds to a loss of information through the supply chain. This can be informally defined but also given a precise measure using conditional entropy. The loss of information is due to the fact that it is only the implicit information due to financial transactions that is available in traditional supply chains. In electronic business individual end-customer orders are transmitted via the internet or similar channels far up the supply chain with correspondingly greater information and higher diversity density.


keywords: ecommerce, ebusiness, eshopping, information theory, informational role of money, internet shopping

 

 

 

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