A constructional DDM model for risk management of Virtual Enterprise

To guarantee the profit, Virtual Enterprise (VE) has to manage its risk effectively. Due to VE’s distributed characteristics, such as the diversity of members and distribution of cooperative regions, we introduce a distributed decision making (DDM) model for risk management of VE. In detail, we propose a constructional DDM model, which focuses on the situation of team or enforced team relationship between partners of VE. A taboo search (TS) algorithm is designed to solve the model. Numerical examples are given to illustrate the effectiveness of the model and the proposed algorithm.