Risk Management in Hierarchical Production Planning Using Inter-enterprise Architecture

Unexpected events in hierarchical production planning, such as rush orders, labor problems, lack of availability of materials and faulty machines have to be managed efficiently because they represent a risk for business continuity, based on their impact and duration. The use of inter-enterprise architecture offers multiple benefits for collaborative networks, including: business strategy and information technology alignment, joint process integration and synchronization, supply chain cost reduction, risk and redundancy minimization and customer services improvement. Therefore, the use of inter-enterprise architecture to address the problem of unexpected events in hierarchical production planning supporting operational risk management is proposed. This paper presents a model for inter-enterprise architecture that addresses the problem of handling unexpected events in hierarchical production planning and how the inter-enterprise framework is embedded into the model.