Abstract:The relation between logistics systems and other socio-economicsystems is close but complex, the randomness and uncertainties of theirinteraction are very obvious, which shows typical grey feature. Grey relationentropy analysis method synthesizes the advantages of grey relation analysistheory and Shannon information entropy theory. In this paper, grey relationentropy analysis method is put forward to discuss the major affecting factorsof logistics development because logistics system is a grey system, as ismentioned above. Total freight traffic, the mapping variable of logisticssystem, is taken as reference series and the mapping variables of othersocial-economic system are taken as compared series. After calculating thevalues of grey relation entropy and entropy relation grade between referenceseries and compared series, the major affecting factors of logisticsdevelopment are obtained which are based on the sequence of each comparedmapping variable. The greater relative degree between grey relation entropy andentropy relation of comparison series is, the more relevance between thecomparison and the reference is. This method is objective and quantitative thatcan overcome shortcomings of subjective factors and qualitative analysis, andthe result is quite reasonable and reliable. A practical example is given todemonstrate its application and its availability.

Keywords:Logistics development, Affecting factors, Grey relation entropy, Entropyrelation grade 

1 Introduction

Logistics system is one of the subsystemsof the socio-economic development systems, and other subsystems ofsocio-economic that affect logistics system are collectively called logisticsdevelopment affecting factors. 

At present, the development of logisticsindustry in China is in its infancy, and many regions are pleased to take themodern logistics industry as their pillar industries, therefore, it is of greatsignificance to further analyze the major affecting factors of logisticsdevelopment. Research results are very helpful to identify entry points in theinitial stage of logistics development; to scientifically select indicatorsfrom many affecting factors as to construct quantitative economic models oflogistics development, such as analysis models, forecast models and evaluationmodels, to master the principal contradiction of logistics development in theprocess of making logistics development planning, introducing correspondingmeasures and the operation of macro-regulation and control.

To analyze and, furthermore, to solve theseproblems above, this article proposes the method of grey relation entropyanalysis (Zhang 1996a) tostudy the major logistics affecting factors based on the reasons as follows.

First, logistics systems and othersocio-economic systems are close but complex relation, and they are of mutualpromotion and mutual restraint. The randomness and uncertainties of theirinteraction are very obvious, which present the typical grey feature accordingto Grey System Theory (Deng 1990, 2002).

Second, different development periods arealso taken into account that the relationship between logistics industry andother industries is changeable, so the logistics development quantitativeeconomic models appear obvious timeliness. It is a small sample question thatwe could only use data in recent years when inspecting the major affectingfactors of logistics development, and the information that small samplereflects is inaccurate, incomplete, and grey.