A survey of partner selection methodologies for virtual enterprises and development of a goal programming–based approach

  • Shahrzad Nikghadam
  • Bahram Lotfi Sadigh
  • Ahmet Murat Ozbayoglu
  • Hakki Ozgur Unver
  • Sadik Engin Kilic
ORIGINAL ARTICLE

Abstract

A virtual enterprise (VE) is a platform that enables dynamic collaboration among manufacturers and service providers with complementary capabilities in order to enhance their market competitiveness. The performance of a VE as a system depends highly on the performance of its partner enterprises. Hence, choosing an appropriate methodology for evaluating and selecting partners is a crucial step toward creating a successful VE. In this paper, we begin by presenting an extensive review of articles that address the VE partner selection problem. To fill a significant research gap, we develop a new goal programming (GP)–based approach that can be applied in extreme bidding conditions such as tight delivery timelines for large demand volumes. In this technique, fuzzy analytic hierarchy process (F-AHP) is used to determine customer preferences for four main criteria: proposed unit price, on-time delivery reliability, enterprises’ past performance, and service quality. These weights are then incorporated into the GP model to evaluate bidders based on customers’ preferences and goals. We present a case study in which we implement the F-AHP-GP technique and verify the model’s applicability, as it provides a more flexible platform for matching customers’ preferences.

Keywords

Virtual enterprise Partner selection Fuzzy AHP Goal programming 

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Copyright information

© Springer-Verlag London 2015

Authors and Affiliations

  • Shahrzad Nikghadam
    • 1
  • Bahram Lotfi Sadigh
    • 1
  • Ahmet Murat Ozbayoglu
    • 2
  • Hakki Ozgur Unver
    • 3
  • Sadik Engin Kilic
    • 4
  1. 1.Department of Mechanical EngineeringMiddle East Technical UniversityAnkaraTurkey
  2. 2.Department of Computer EngineeringTOBB University of Economics and TechnologyAnkaraTurkey
  3. 3.Department of Mechanical EngineeringTOBB University of Economics and TechnologyAnkaraTurkey
  4. 4.Department of Manufacturing EngineeringAtilim UniversityAnkaraTurkey

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