A risk analysis method for selecting logistic partners to compose Virtual Organizations

Abstract

Virtual Organizations (VO) have complex interactions between their members, both industrial and logistics. Once industrial partners are selected, the VO should be complemented with the logistics partners that will deliver the produced goods between those partners. This paper presents a supporting decision method for selecting the most suitable logistics partners that consider not only capabilities, historical performance and availability, but also risks. In general, a risk is characterized by the potential of each logistic partner to do not fulfill VO's business requirements and that can jeopardize its accomplishment. The method firstly evaluate and measure risks per partner, and collectively afterwards. Its formalization and examples are provided along the paper. Discussions are presented in the end. © IFIP International Federation for Information Processing 2013.