A Hybrid MCDM Approach for Solving the ERP System Selection Problem with Application to Steel Industry

Abstract

Selecting a proper system of Enterprise Resource Planning (ERP) is a major challenge for enterprise managers. Heavy expenses of incorrect decisions in selection of ERP systems have made academics and managers consider this phase as highly important. Several research studies proposed different approaches to selecting the ERP and many case studies of organizational experiences have been published. However, there has been less regard for simultaneous use of the findings of academic studies and judgments of industrial experts or organization mangers for making the most appropriate choice. This study proposes a combined multiple-criteria decision-making (MCDM) approach through which both previous studies and judgments of industrial experts or organization managers would be integrated in order to select the proper ERP system. Having studied the literature comprehensively and conducted interviews with experts and managers, this approach will determine the most important criteria in ERP selection using Shannon entropy technique. Then, based on the judgments obtained from experts and using DEMATEL technique, these criteria will be classified into the two groups of “Cause” and “Effect” and the most appropriate choice will be selected using Fuzzy AHP technique. Finally, a case study is conducted to demonstrate and prove the applicability of the proposed approach.

An integrated fuzzy multi criteria group decision making approach for ERP system selection

“…Gürbüz et al (2012) suggested an assessment framework using an integration approach that utilizes ANP, Choquet integral and Measuring Attractiveness by a Categorical Based Evaluation Technique for the evaluation of four ERP software alternatives. Jafarnejad et al (2012) investigated an integrated approach which includes Shannon entropy technique, DEMATEL, fuzzy AHP. Kara and Cheikhrouhou (2014) determined a two phase methodology, fuzzy AHP for criteria weights and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) for ranking the alternatives, to select the collaborative software.…”

Designing a MCDM Model for Selection of an Optimal ERP Software in Organization

“…Temur and Bolat [19] showed that the ERP system selection problem area has high sensitivity to the uncertain environment, and decision makers should not undervalue the unsteadiness of criteria during the ERP system selection process, especially within volatile economies. Jafarnejad et al [20] proposed a MCDM Model including the DEMATEL technique and fuzzy AHP technique for solving the ERP system selection problem with application to the steel industry. In this study, the most important criteria in ERP selection were identified using the Shannon entropy technique.…”

A Combined Fuzzy Method for Evaluating Criteria in Enterprise Resource Planning Implementation

“…The ERP selection critical success factors have been vastly addressed and analyzed in ERP literature by many researchers (Kazemi et al, (2014); Jafarnejad et al, (2012); GüRbüZ et al, (2012); the assessment framework is constructed. The fuzzy analytic hierarchy process is then used for this framework (Figure 6).…”