Distributed Risk Management Model and Algorithm for Virtual Enterprise with Private Information

For the desired profit and anticipated goal, the virtual enterprise (VE) must avoid the risk successfully. In view of its characteristics, such as the diversity of partners and distribution of cooperative regions, the idea of distributed decision-making (DDM) is applied to the management of the virtual enterprise' risks, with a Organizational-DDM risk management model developed for those virtual enterprises which are in relation to enforced team and with private information. A taboo search algorithm is designed to solve the model. The computation results of simulative examples show the effectiveness and feasibility of the model and algorithm.