Partners relationship based Distributed Decision Making models for risk management of Virtual Enterprise

To guarantee the expected profit, Virtual Enterprise (VE) has to manage its risk effectively. Due to VE’s distributed characteristics, we explore the art of Distributed Decision Making (DDM) theory and apply it to risk management of VE. Based on partners relationship, such as team, enforced-team and non-team, we introduce four classes of models, constructional DDM model, organizational DDM model, coordinative model and principle-agent model. The brief solutions of the models are also discussed.