Article ID: | iaor20003406 |
Country: | United Kingdom |
Volume: | 17 |
Issue: | 6 |
Start Page Number: | 343 |
End Page Number: | 350 |
Publication Date: | Dec 1999 |
Journal: | International Journal of Operations & Production Management |
Authors: | Bushuyev Sergey D., Sochnev Sergey V. |
Keywords: | entropy |
An Entropy model is introduced for estimating and managing the uncertainty in projects. Entropy is proposed as a unified measure of uncertainty which allows to compare various types and sources of risk. Using the Entropy manager can consider different categories: budget contingency, schedule contingency, management reserve, quality issues from one viewpoint. A computational example for simultaneous usage of Monte Carlo and proposed Entropy model is given.