Analysis of the Balance in the Activities of Utility Companies Based on the Entropy Theory and the Theory of Constraint

Abstract

This study investigates the possibility of using tools based on the theory of soft computing to estimate the efficiency of companies in the housing and utility sector.

Aim. This study aims to estimate the efficiency of an existing company in the housing and utility sector using the methods of the entropy theory.

Tasks. This study examines the key aspects of the energy-entropy approach to company activity and the most effective methods for the calculation of system entropy, calculates the entropy of an existing utility company, and estimates its efficiency.

Methods. This study uses general methods of scientific cognition and those for the estimation of company entropy as a system, calculates system entropy of a utility company, and interprets the obtained results.

Results. According to the entropy assessment conducted for the selected utility company over the period under review, its efficiency changed because of changes in both the external environment and decisions of the company management. By the end of the analyzed period, the level of entropy at the company dropped below the initial level, which indicates an increase in the efficiency of the system.

Conclusion. High uncertainty of internal processes is just as dangerous for a complex system as high determinacy; businesses are no exception to this. Methods for estimating system efficiency based on the ideas of the energyentropy theory can be applied to estimate the efficiency of a company. The combination of modern management and model theories based on soft computing facilitates bringing the company to its optimal condition.