Multi-swarm particle swarm optimization based risk management model for virtual enterprise

Abstract

Virtual Enterprise (VE) is a main scheme of enterprises in the 21st century. There are various risks for VE, due to VE's agility and diversity of its members and its distributed characteristics. This paper presents a novel risk management model for VE, a Constructional Distributed Decision Making (CDDM) model. The model has two levels, namely, the top-model and the base-model, which describe the decision processes of the owner and the partners respectively. In this model, the situation of information symmetry between owner and partners is considered. The size of the search space will be very huge, when the number of members in VE, the number of risk factors and the number of actions increase. In addition, there are multiple members in VE. Considering the biological and computational motivations, a Multi-swarm Particle Swarm Optimization (MPSO) is then designed to solve the resulting optimization problem. Simulation results show the effectiveness of the proposed algorithm. Copyright 2009 ACM.