Risk-Value-Cost-based Optimization of Global Value-adding Structures☆

Abstract Present methodologies do not adequately take qualitative factors into account in optimizing the distribution of value-added activities. This is where the method currently developed by the Fraunhofer IPA for a risk-value-cost-based optimization of global production networks comes in. Unlike previous approaches, this method considers qualitative criteria comprehensively, classifying them into risks and values, and analyzing them in an integrated manner to determine the global optimum. For comparing qualitative and quantitative factors, a multi-criteria optimization approach is developed, which is the first to deliver consistent results.

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