Stochastic partner selection for virtual enterprises: a chance-constrained approach

A virtual enterprise (VE) is a temporary organisation that pools the core competencies of its member enterprises in order to exploit fast-changing market opportunities. Making successful collaborative partnerships is, in this context, a major challenge in today’s competitive business environments. The success of such a ‘virtual’ organisation is strongly dependent on its composition, and the selection of partners becomes therefore a crucial issue. This problem is particularly difficult because of the uncertainties related to information, market dynamics, customer expectations and technology speed-up, with a strongly stochastic decision-making context. In this paper, a chance-constrained approach to rank alternative VE configurations in business environments with uncertainty, and vague and random information, is proposed. This approach is based on a two-stage model: a chance-constraint multi-objective directional Tabu Search metaheuristic, complemented by a 2-tuple fuzzy linguistic representation model. Preliminary computational results clearly demonstrate the potential of the approach for practical application.