Optimized consortium formation through cluster analysis

Abstract

Some problems cannot be solved optimally and compromises become necessary. In some cases obtaining an optimal solution may require combining algorithms and iterations. This often occurs when the problem is complex and a single procedure does not reach optimality. This paper shows a conglomerate of algorithms iterated in tasks to form an optimal consortium using cluster analysis. Hierarchical methods and distance measures lead the process. Few companies are desirable in optimal consortium formation. However, this study shows that optimization cannot be predetermined based on a specific fixed number of companies. The experiential exercise forms an optimal consortium of four companies from six shortlisted competitors