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

Abstract

Among the growth of the Industrial Revolution 4.0 and moving towards 5.0, the application of science and technology is a decisive factor in catching up with new business trends. In particular, the application of the enterprise resources planning (ERP) towards enterprise management is extremely important. ERP systems help businesses save time and effort in managing projects and utilizing resources. Instead of manual handling, the processes are carried out automatically. At the same time, the system operates correctly and efficiently which avoids errors. In this work, the author explored the application of a fuzzy multicriteria decision making (FMCDM) method including Fuzzy Analytic Hierarchy Process model (FAHP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) model for the evaluation of various ERP software (mainly warehouse and inventory management module). First, the fuzzy AHP model is applied to calculate the weights of criteria, and then, the obtained weights are used in the TOPSIS method for ranking of the alternatives. This study would assist decision makers in an ERP implementation environment in deciding a suitable ERP software for various industries.