In this paper, an information theoretic approach is applied to analyze the
performance of a decentralized control system. The control system plays the
role of a correcting device which decreases the uncertainties associated w
ith state variables of a production line by applying an appropriate "correc
ting signal" for each deviation from the target. In particular, a distribut
ed feedback control policy is considered to govern a transfer production li
ne, which consists of machines and buffers and processes a single part type
in response to a stochastic demand. It is shown how the uncertainty of the
demand propagates dynamically into the production system, causing uncertai
nties associated with buffer levels and machine production rates. The paper
proposes upper estimates for these uncertainties as functions of the deman
d variance, parameters of the distributed controllers and some physical pro
perties of the production line. The bounds are based on dynamic entropy mea
sures of the system state and the control variables. Some practical implica
tions into the area of decentralized controller design are proposed, an inf
ormation-economical analysis is presented and a numerical study is performe
d.