The application of information entropy in financial risk evaluation of supply chain

With the development of economics globalization and IT, the core of competition is no longer the competition among different individual enterprises, but the competition among different supply chains. In the supply chain system, the unstable financial situation of one of the supply chain members will have an absolute impact on the whole supply chain. More seriously, the capital chain can be broke down. To fully understand the level and influence of the financial risk that supply chain nodes enterprises face, the authors put forward a model for supply chain financial risk evaluation with the help of information entropy. By giving different evaluation indicators different weight, this model can provide us with an objective result that will be useful for us to identify the stability of the supply chain, choose enterprises with low financial risk, replace enterprises with high financial risk, better prevent supply chain risk and have a direct or indirect effect on operation of the upstream and downstream enterprises.