Model to Monetarily Aggregate Risks of Procurement to Support Decision Makers : of Manufacturing Enterprises

The present thesis provides a model to monetarily aggregate procurement risks to support decision makers. A material flow oriented view forms the fundament of the model. The model is designed to aggregate delay, quality and cost related procurement risks considering their uncertainty. Procurement risks are aggregated to form a monetary risk distribution. Decision-makers can select procurement strategies that are adequate for their risk situation, depending on their affinity for risk to mitigate procurement risks.