Study on Cooperation Model in Virtual Enterprise

Chapter III presents the BM_Virtual Enterprise (BM_VE) model, as an Agile/Virtual Enterprise, in total or partial conformance with the BM_Virtual Enterprise Architecture Reference Model (BM_VEARM) (i.e., as a dynamically reconfigurable network integrated over the global domain, satisfying the requirements for integrability, distributivity, agility and virtuality as the competitiveness factors). According to BM_VEARM, a virtual enterprise (VE) is “… an optimized enterprise, synthesized over a universal set of resources, with a real-time replaceable physical structure, and when the synthesis and control are performed in an abstract or virtual environment.” The importance of presenting the BM_VE is in the fact that VE, or Agile/Virtual Enterprise (A/VE), implementation and management is not possible without Market of Resources (MR), and similarly defined structures and/or organizations, as an external independent institution that would serve as an environment to support the VE dynamic integration, operation and reconfiguration, as well as “boost” to the networking (VE) dynamics, providing overcoming (i.e., minimizing) of the twofundamental networking disablers: (1) “transaction” (i.e., reconfigurability) costs, and (2) the VE partners’ knowledge and rights protection. Market of Resources is the third mechanism, or tool, that BM_VE, or any VE conceived as a dynamically reconfigurable enterprise network uses. It is an institution, or enterprise, operating as a meta-enterprise of the operating VE. BM_Virtual Enterprise uses three main mechanisms, or tools: Broker, Virtuality and Market of Resources. Broker is the agent of agility and virtuality. Virtuality as a tool is a specific organizational structure pattern that contributes to further improvement of agility/reconfiguration dynamics. The consequences of virtuality, as defined in BM_VE model (i.e., in BM_VEARM), are: (1) the hierarchical structure of VE, or A/VE, organization, (2) the Resource-centered Virtual Enterprise Definition (in a way the inverse definition of the “traditional” VE definitions), and (3) the virtualization process. The consequences of virtuality in BM_VE, following BM_VEARM, the Resource centered Virtual Enterprise Definition, and the process of virtualization, following BM_VE and BM_VEARM, directly implied by the (BM_VE) VE Extended Life Cycle, characterized by the “contractualization of the Market of Resources” environment, or a meta-enterprise for its (VE) implementation and management. BM_VE is a ubiquitous enterprise too. This is exactly because ubiquitousness is necessarily based on the Resource-centered Virtual Enterprise Definition. Market of Resources, and similarly defined environments, enable VE, or A/VE, to operate as a ubiquitous enterprise too. Ubiquitous enterprise, and VE as a ubiquitous enterprise, could be considered as the next generation (enterprise) organizations.

The partner selection in virtual enterprises organization is one of the key issues corporate enterprises experience nowadays. Based on the model of Ant Colony Optimization Algorithm (ACA) in virtual enterprise partner selection, in this paper, we fuse the genetic algorithm into ACA, called fusion algorithm, in order to improve the effect of the partner selection. The fusion algorithm has two steps: 1) it uses the GA to optimize the model of partner selection and takes advantages of rapid convergence of GA in initial search periods. 2) When GA search speed has become slow, the ACA takes over the search process, in which it uses the candidates produced by the GA as the seeds of pheromone used by ACA. By experimental comparison with GA optimization and ACA optimization, it shows that the fusion algorithm has performed better than the GA and ACA optimization, respectively, in both speed and accuracy under our selected numerical case. The fusion algorithm presented in this study may be applicable to similar business problems.

Partner selection is one of the core problems in the phase of virtual enterprise (VE) creation, since the selection of right partners is crucial to the success of VE. To effectively solve the partner selection and optimization problem in VE practice, a mathematical model with the objective of minimizing the total manufacturing cost of tasks within the due date is discussed in this paper. As the objective formulation is not continuous and differential, it cannot be solved exactly by integer programming, an improved ant colony optimization algorithm (IACO) is proposed to solve the problem. A crossover operator which is usually used in genetic algorithm (GA) is introduced into IACO, so it can improve the search ability of ant colony and make consequently solution better. Finally, an illustrative example is presented to show the efficiency of the algorithm.

Within the scope of the collaborative research centre Non-hierarchical regional production at Chemnitz University of Technology, a virtual enterprise model is developed. This is based on very small performance units - the competence cells (CCs). The precondition of the efficient and thereby competitive operation of those networks is a network controlling for objectively selecting the best suitable CCs for every order. This problem gains complexity because the manufacture of a product can be carried through in different ways.

Partner selection is one of the most critical issue in virtual enterprise, which has been extensively researched in recent years. It is difficult to be solved by the traditional optimization methods for partner selection is a combinatorial optimization problem. In this paper, an improved quantum swarm evolutionary algorithm based on time-varying acceleration coefficients (IQSEA_TVAC) is proposed for partner selection optimization problem. The results of simulation experiments show that the improved algorithm is valid and outperforms the conventional quantum evolutionary algorithm.

Virtual enterprise is the outcome of fierce competition in the world market. The selection of partners is one of the key factors for the success of virtual enterprises. Multi-agent system is an incompact agent federation composed of many agents, with its characteristics identical to virtual enterprises. It is, therefore, reasonable and effective to apply to the selection of enterprises' partner. The issue of trust is a hot topic in multi-agent system. The present trust model cannot well solve the problem of identifying the initial trust value of applicant agents. Moreover, there is room for improvement as to the calculation of agent trust value. This study puts forward a new trust management model based on multi-agent system. In the model, a fuzzy algorithm is used to calculate the initial value of the agent instead of a static definition. In addition, an independent validation module is used to test information reliability. Therefore, the problems of identifying initial trust value can be solved. Through system simulation, it is noted that based on the trust management model the cooperation rate has been enhanced and individual agent's income has risen by a big margin.

Selection of right partners is vital for virtual enterprise (VE) to take the advantage of market opportunity. Partner selection problem belongs to combinatorial optimisation category and known as NP-hard. A modified discrete particle swarm optimisation (PSO) algorithm is proposed, in this work, to select alliances in a VE. The velocity terms, which is commonly used in the standard PSO algorithm, is avoided; rather, the concept of proportional likelihood with modifications, a method used in data mining techniques, is adopted to improve solution quality. A set of experiments have been conducted and results indicate PSO algorithm is an effective and efficient way to solve the partner selection problems with precedence, risk of failure and due date constraints. A design of experiment (DoE) approach is adopted to study statistical significance of various model parameters on solution quality.

Recent advances in networking technology have increased the potential collaborations for virtual enterprises (VEs) on a global scale. Due to the dynamic nature of collaborations, building and evolving trust is essential to support the formation of VEs. There is a critical need for the new approach suited to this environment. This paper presents a trust-based approach for partner selection problem in the VEs. The proposed model explores the dynamic properties of trustworthy index, which provides a multiperspective and interactive overview of potential partners to the decision-makers. The model uses the hybrid learning algorithm of fuzzy cognitive map (FCM). As FCM has the excellent ability in modeling complex systems, the proposed model can support historical data mining automatically, and revise the existing model according to the new requirements. Results of three experiments show that this model provides reasonable performance and high adaptability for diverse partner selection problems.

The partner selection problem (PSP) in virtual enterprise has been comprehensively investigated from the aspects of research fields, contents, attributes or criteria been considered, and algorithms. With the consideration of environmental protection, the importance of “green criteria” in PSP is introduced, and two new green criteria, i.e., carbon emission and lead content in manufacturing production, are firstly brought into PSP. A formulation of PSP with green criteria is established which includes four objectives and six constraints. A new improved algorithm, named Pareto genetic algorithm for PSP (Pareto-PSGA), is designed for addressing the specific PSP. With Pareto solution ideas, vector encoding, random selection, two-point crossover, and single-point mutation for Pareto solutions are designed in the Pareto-PSGA. Experimental results demonstrate that compared with other typical intelligent algorithms such as simulated annealing and particle swarm optimization, Pareto-PSGA shows high performance in solving the specific PSP with more suitable Pareto solutions in shorter time.

Interorganizational (IO) cooperation has been examined primarily as a role-based concept. This research seeks to extend this concept by examining a distinct mode of IO cooperation: favor-based coop...

Small and medium sized enterprises (SMEs) operating in industrial districts havehistorically provided an important alternative to the advantages achieved through alarger production scale in the context of the Italian industrial system. However, in recentdecades uniform growth in SME networks has come to an end. The industrial districtmodel has often proved to be rather a ‘stage’ in one of the possible different paths ofindustrialisation. In fact, small firms are evolving towards a scenario characterised byincreasing competition and massive introduction of ICT. These changes have acceleratedthe search for new organisational forms that allow SMEs facing the growing complexityof the business environment. Furthermore, it is of paramount importance to sustain local SME networks especially during period of economic crisis. One possible way may be tosupport the virtualisation potential of SME networks and encourage their rapid evolutiontoward the Virtual Enterprise (VE) model order to seize new development opportunities.Despite increasing academic interest toward the VE, there are a number of key issues notaddressed by the current literature such as the possible form VEs may assume and the lackof empirical investigations. This paper tries to fill these voids. Two are the main objectivesof this paper. Firstly, to analyse the possible models that VE may assume when participatedby SMEs and, secondly, to fill the existing empirical research gap in this field. In order toachieve the above objectives a comprehensive literature review on the subject has been firstcarried out. Subsequently, an exploratory questionnaire survey has been implemented ina SME network located in the eastern area of Naples city. The literature review allows theidentification of two extreme VE forms: the Hierarchical and the Holarchical models. Theresult of the questionnaire survey suggests that the network analysed may be a potentialpool of VEs in which temporary relationships oriented to specific projects are continuouslyformed and reformed. Finally, the comparison between literature review and surveyfindings allows establishing that VEs created in that network may assume a hybrid formbetween the two extreme models identified.

Small, Medium, and Micro enterprises (SMMEs) usually do not have adequate funds to acquire ICT infrastructure and often use cloud computing. In this paper, the authors discuss the implementation of virtual enterprises (VE) to enable SMMEs to respond quickly to customers’ demands and market opportunities. The virtual enterprise model is based on the ability to create temporary co-operations and realize the value of a short term business opportunity that the partners cannot fully capture on their own. The model of virtual enterprise is made possible through virtualisation technology, which is a building block of cloud computing. To achieve a common goal, enterprises integrate resources, organisational models, and process models. Through the virtual business operating environment offered by cloud computing, the SMMEs are able to increase productivity and gain competitive advantage due to the cost benefit incurred. In this paper, the authors propose a virtual enterprise enabled cloud enterprise architecture based on the concept of virtual enterprise at both business and technology levels. The business level comprises of organisational models, process models, skills, and competences whereas the technology level comprises of IT resources.

Describes the virtual enterprise life cycle theory. Builds integrated energy saving and letting out reduction management model of virtual enterprise. Studies the management of building stage, running stage, development stage and terminate stage. Points out virtual enterprise energy saving and letting out reduction management is a dynamic process running through the virtual enterprise life cycle.

Nowadays, virtual enterprise (VE) is an important paradigm of business management in an agile environment. VE exists in several kinds of business organization through multi-layered product flows. It is obvious that a mechanism, through which these different enterprises can be integrated together, is required for the better management of VE. In this paper, we focus on the negotiation process in VE formulation as a basic research to clarify its effective management. Each enterprise in VE is defined as a software agent with multi-utilities, and three types of primitive business models are targeted, such as the vertically integrated business model, horizontally specialized business model and hybrid business model. We develop a three-layered VE model for computer simulation so as to clarify VE formulation dynamism with the proposed negotiation mechanism.

The Internet has fueled the creation and deployment of virtual organizations and enterprises. This chapter provides a discussion of issues, approaches, and technologies related to Internet‐based virtual enterprises (VEs). The major focus is on the technologies used to seamlessly exchange information across the Internet by distributed VE partners. The computer architectures available for adoption by VEs to communicate via the Internet is also elaborated with emphasis on the Common Object Request Broker Architecture, the Distributed Common Object Model, and Java/Jini technology. An outline of several government, industry, and university initiatives related to VE subject domain is also provided. A synopsis of the key phases involved in the creation of VEs is provided along with a discussion on the vital role played by information‐oriented enterprise models in the deployment of VEs.