| 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.