Partner selection in virtual enterprises: a multi-criteria decision support approach

Partner selection in virtual enterprises (VE) can be viewed as a multi-criteria decision making problem that involves assessing trade-offs between conflicting tangible and intangible criteria. In general, this is a very complex problem due to the dynamic topology of the network, the large number of alternatives and the different types of criteria. In this paper we propose an exploratory process to help the decision-maker obtain knowledge about the network in order to identify the criteria and the companies that best suit the needs of each particular project. This process involves a multi-objective tabu search metaheuristic designed to find a good approximation of the Pareto front, and a fuzzy TOPSIS algorithm to rank the alternative VE configurations. In the exploratory phase we apply clustering analysis to confine the search according to the decision-maker beliefs, and case base reasoning, an artificial intelligence approach, to totally or partially construct VEs by reusing past experiences. Preliminary computational results clearly demonstrate the potential of the approach for practical application.