Abstract: Professor Ydstie will speak about how flow and inventory in complex networks like supply chain systems, chemical plants and information systems can be modeled using distributed and autonomous devices that integrate physics, communication and control. We develop a generalized entropy function which provides the basis for an analogue to the Kirchoff voltage law. The conservation laws play the role of the current law. Nonlinear systems theory is then used to show that the flow distribution automatically stabilizes so that the dissipation is minimized. By making analogies amongst process control, network thermodynamics and business decision making we then show that distributed inventory and flow control can give feedback systems that adapt and self-optimize. The supply chain for solar grade silicon production provides the benchmark illustration in this presentation. Other applications like glass manufacture, silicon and aluminum smelting will be discussed.