Governance of global supply chains vulnerability by business-based interorganizational information platform

• DOI: 10.1007/s11518-013-5211-z
• Publication Date: 2013-03-15T20:12:00Z
• Authors: Zhenyu Liu; Weiqing Zhuang
• Keywords: DYNAMICS; MODEL; STRATEGIES; SYSTEMS; 0502 economics and business; 05 social sciences; RISK-MANAGEMENT; 303; VALUE-BASED PERFORMANCE

The paper introduces the business-based interorganizational information platform (IOP) and analyzes the feasibility and mechanism of business-based IOP governing global supply chains vulnerability, and then aims to develop a risk evaluation software under reliable algorithm to appraise the capability of an interorganizational information platform resisting to global supply chains risks that supports platform users and providers to make decisions. The paper respectively starts with a basic conceptual model of global supply chains vulnerability and a conceptual model of global supply chains vulnerability in business-based IOP, and then gives the simulation model of governance of global supply chain vulnerability in business-based IOP; then has a discussion with the beneficial model of governing global supply chains vulnerability by using business-based IOP or not. The results of research: (1) If given the ratio of expense per income on global supply chains using business-based IOP, we can estimate the costs to take precautions against risks that decides to the maximum value of the average income of per transaction on global supply chains using business-based IOP. (2) If given total income of transaction on global supply chains using business-based IOP, we can estimate the maximum value of the ratio of expense per income on global supply chains using business-based IOP, which would help to make pricing policy for IOP service provider.