Increasing global competition drives enterprises, especially small and medium-sized enterprises, to collaborate in order to respond faster to customers' needs, reduce operating costs, increase capacity, and produce customised products to reach the market quicker. A virtual enterprise (VE) is an important manufacturing paradigm to address this trend in the dynamic global economy. Partner selection is a key issue tightly coupled to the success of a VE coalition, and because of its complexity, it is considered a multi-attribute optimisation problem. In this paper, an enhanced ant colony optimiser (ACO) is proposed to address the partner selection problem. Five attributes (namely, cost, time, quality, reputation, and risk) considering both qualitative and quantitative aspects have been investigated to evaluate the candidate partners. Experiments have been conducted to validate the performance of the enhanced ACO algorithm, and the results show that the enhanced ACO algorithm can produce better results in terms of search accuracy and computing time.
IntroductionAs competition among enterprises is continuously increasing in the global market, enterprises, especially small and medium-sized enterprises (SMEs), need to cooperate with each other in order to enhance their capability and capacity. A virtual enterprise (VE) is an important manufacturing paradigm for enterprises to collaborate with each other. Generally, VEs are formed for two reasons, namely, a faster response to job opportunities and meeting the requirements of mass customisation (Niu et al. 2009).A VE is a dynamic, temporary, and logical alliance of enterprises that collaborate with each other to exploit fastchanging market opportunities or cope with specific needs. Their operation is achieved by a coordinated sharing of skills, resources, information, and knowledge, as well as risks and benefits (Drissen-Silva and Rabelo 2009). VEs offer new opportunities to companies in a global business environment to better satisfy their customer needs with lower pricing by allowing member enterprises to cooperate and make full use of their core strengths to survive.There are four phases in the life cycle of a VE, namely, the creation, operation, evolution, and dissolution phases (Wu and Su 2005, Drissen-Silva and Rabelo 2009). The success of a VE is strongly dependent on its composition; thus, this research focuses on the VE creation phase. In the creation phase, the selection of partners is the most crucial issue, as selecting proper partners involves multiple selection criteria and constraints, and a poor selection may result in a higher manufacturing time and cost, and less competitive products. Partner selection can be viewed as a multi-criteria decision-making problem where the decision-makers assess the trade-offs between conflicting tangible and intangible criteria, and indicate their preferences based on incomplete or non-available information. In general, this is a very complex problem owing to the large number of alternatives and different types of criteria (...