A Binary Ant Algorithm for Partner Selection Problem in the Virtual Enterprise

The formation of a Virtual Enterprise and the selection of its partners is an important process in the lifecycle of a Virtual Enterprise. This paper employs a binary coded ant colony optimization (ACO) algorithm for the partner selection optimization. At first, an optimization model is presented, which includes the main crucial factors for partner selection, such as running cost, reaction time and failure risk. ACO is then presented for the solution. Then a typical example is used to illustrate the effectiveness of the algorithm. Simulation results demonstrate that the proposed optimization model and method provides a reference to partner selection in the practical VE operation.