Enterprice Resource Planning (ERP) Software Selection Process with Fuzzy TOPSIS Method

Article Information
Journal:Business and Economics Research Journal
Title of Article:Enterprice Resource Planning (ERP) Software Selection Process with Fuzzy TOPSIS Method
Author(s): Ayse Yildiz, Dogan Yildiz
Volume: 5
Number: 1
Year: 2014

An Enterprice Resource Planning (ERP) system makes possible an integrated enterprise system to automate the flow of material, information, and financial resources among all functions within an enterprise on a common database. While appropriate ERP selection can create competitive advantage for the firms, inappropriate ERP selection would cause either fail the project or make an adverse impact on the firm performance. Therefore, it is crucial to make correct choice for the ERP system. However, selecting a appropriate ERP involves complex process based on the evaluation ratings of the alternatives under various criteria and the weights of the criteria frequently assesed in linguistic terms such as high, poor etc. A fuzzy multiple-criteria decision-making method is very useful in integrating various linguistic assessments and weights to evaluate ERP alternatives. The aim of this paper apart from the other studies is to introduce a comprehensive framework how the fuzzy TOPSIS method can be applied to select a suitable ERP system. The framework is developed based on ten criteria and five alternative variables for one company. As a result of the evaluation fifth alternative is selected in the first place and software compability with the costs idenfied as the most important criteria.

Keywords:Fuzzy logic, TOPSIS, fuzzy TOPSIS, trapezodial fuzzy numbers, enterprice resource planning

JEL Classification:C44, C61, D81

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