A Fuzzy Decision Making Approach to Enterprise Resource Planning System Selection

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Abstract:
Here, we propose a fuzzy analytic hierarchy process (FAHP) method to evaluate the alternatives of enterprise resource planning (ERP) system. The fuzzy AHP approach allows the users get values more accurately to model the vagueness which changes according subjective ideas in the decision-making environment for ERP system selection problem. Therefore, fuzzy AHP method is used to obtain firm decisions and noticeable solutions. The criteria are determined and then compared according to their importance. The methodology also gives some suggestions about successful ERP selections. The proposed methodology can be used for other sectors with some changes. Fuzzy group decision-making can be used for this purpose. We show how effective fuzzy AHP is as a decision-making tool in system selection problem. It is seen that fuzzy AHP is a useful decision-making methodology to make more precise selection-decisions that may help the company to achieve a competitive edge in a complex environment. Fuzzy AHP approach incorporates quantitative data of the criteria, which have to be evaluated by qualitative measures. The proposed selection methodology is flexible to incorporate new or extra criteria or decisions for the evaluation process. Besides, this methodology provides the opportunity to a project team to decompose complicated selection problem into smaller parts. Thus, the project team can understand the relationships among different criteria and easily assign its own ideas to the hierarchical structure. Also, a case study is presented to demonstrate the feasibility of the framework.
Language:
English
Published:
Iranian Journal Of Operations Research, Volume:6 Issue: 1, Winter and Spring 2015
Pages:
34 to 52
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