In this study, the product of the supplier’s revenue impact probability times its revenue impact provides “VAR” dollars. VAR is defined as the minimum loss expected on a portfolio of assets over a certain holding period at a given probability (Venkataraman, 1997). VAR was developed by financial institutions in the early 1990s to provide senior management with a single number that could easily incorporate information on the risk of a portfolio of assets (Engle and Manganelli, 2004). Today, VAR has evolved into a risk measurement tool which can be applied outside of the financial management arena, such as in making procurement decisions (Sanders and Manfredo, 2002). VAR can also be used to evaluate and manage supplychain risks.