Partner Selection in Formation of Virtual Enterprises using Fuzzy Logic

Shahrzad Nikghadam, Bahram Lotfi Sadigh, Ahmet Murat Ozbayoglu, Hakki Ozgur Unver, Sadik Engin Kilic

Abstract

Virtual Enterprise (VE) is a temporary cooperation among independent enterprises to build up a dynamic collaboration framework for manufacturing. One of the most important steps to construct a successful VE is to select the most qualified partners to take role in the project. This paper is a survey of ranking the volunteer companies with respect to four evaluation criteria, proposed unit price, delivery time, quality and enterprises’ past performance. Fuzzy logic method is proposed to deal with these four conflicting criteria, considered as input variables of the model. As each criterion is different in nature with the other criterion, various membership functions are used to fuzzify the input values. The next step is to construct the logical fuzzy rules combining the inputs to conclude the output. Mamdani’s approach is adopted to evaluate the output in this Fuzzy Inference System. The result of the model is the partnership chance of each partner to participate in VE. A partner with highest partnership chance will be the winner of the negotiation. Implementation of this model to the illustrative example of a partner selection problem in virtual enterprise and comparing it with fuzzy-TOPSIS approach verifies the feasibility of the proposed approach and the computational results are satisfactory.

References

  1. Bevilacqua, M. & Petroni, A., 2010. From traditional purchasing to supplier management: A fuzzy logic based approach to supplier selection. International Journal of Logistics: Research and Application, pp. 235-255.
  2. Camarinha-Matos, L. & Afsarmanesh, H., n.d. The virtual enterprise concept. In: Infrastructure for virtual enterprises: networking Industrial enterprises. London: Kluwer Academic Publishers, pp. 3-14.
  3. Chen, T.-Y. & Tsao, C.-Y., 2008. The interval-valued fuzzy TOPSIS method and experimental analysis. Fuzzy Sets and Systems, 159(11), pp. 1410-1428.
  4. Fuqing, Z., Yi, H. & Dongmei, Y., 2005. A multiobjective optimization model of the partner selection problem in a virtual enterprise and its solution with genetic algorithms. The International Journal of Advanced Manufacturing Technology, 28(11-12), pp. 1246-1253.
  5. Huang, X., Wong, Y. & Wang, J., 2004. A two-stage manufacturing partner selection framework for virtual enterprises. International Journal of Computer Integrated Manufacturing, 17(4), pp. 294-304.
  6. Mamdani, E. & Assilian, S., 1975. An experiment in linguistic synthesis with fuzzy-logic-controller, Int. Journal of Man-Machine studies, pp.1-13.
  7. Mikhailov, L., 2002. Fuzzy analytical approach to partnership selection in formation of virtual enterprises. The international journal of management science, Volume 30, pp. 393-401.
  8. Nikghadam, S., Kharrati Shishvan, H. & Khanmohammadi, S., 2011. Minimizing earliness and tardiness costs in job-shop scheduling problems considering job due dates, Proceedings of AIPE.
  9. Sari, B., Sen, T. & Kilic, S. E., 2007. AHP model for the selection of partner companies in virtual enterprises. The International Journal of Advanced Manufacturing Technology, 38(3-4), pp. 367-376.
  10. Shing, J. & Jang, R., 1993. Adaptive-Network-Based fuzzy inference system. s.l., Transactions on Systems, Man and Cybernetics, pp. 665-685.
  11. Ye, F., 2010. An extended TOPSIS method with intervalvalued intuitionistic fuzzy numbers for virtual enterprise partner selection. Expert Systems with Applications, 37(10), pp. 7050-7055.
  12. Zadeh, L. A., 1965. Fuzzy Sets. Information and Control, Volume 8, pp. 338-353.
Download


Paper Citation


in Harvard Style

Nikghadam S., Lotfi Sadigh B., Murat Ozbayoglu A., Ozgur Unver H. and Engin Kilic S. (2015). Partner Selection in Formation of Virtual Enterprises using Fuzzy Logic . In Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-075-8, pages 82-88. DOI: 10.5220/0005293000820088


in Bibtex Style

@conference{icores15,
author={Shahrzad Nikghadam and Bahram Lotfi Sadigh and Ahmet Murat Ozbayoglu and Hakki Ozgur Unver and Sadik Engin Kilic},
title={Partner Selection in Formation of Virtual Enterprises using Fuzzy Logic},
booktitle={Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2015},
pages={82-88},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0005293000820088},
isbn={978-989-758-075-8},
}


in EndNote Style

TY - CONF
JO - Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - Partner Selection in Formation of Virtual Enterprises using Fuzzy Logic
SN - 978-989-758-075-8
AU - Nikghadam S.
AU - Lotfi Sadigh B.
AU - Murat Ozbayoglu A.
AU - Ozgur Unver H.
AU - Engin Kilic S.
PY - 2015
SP - 82
EP - 88
DO - 10.5220/0005293000820088