An Application on Enterprise Resource Planning (ERP) Selection with Multi-Criteria Decision-Making Methods

Abstract

Enterprise Resource Planning (ERP) systems play a crucial role in modern company operations, integrating different functions such as supply chain, customer relations, human resources and finance into an adhesive system. The selection of an appropriate ERP system is a critical and complex decision that impacts an organization's efficiency and competitiveness. This study utilizes the Entropy and Multi-MOORA (Multi-Objective Optimization by Ratio Analysis) multi-criteria decision-making methods to evaluate ERP systems based on six criteria: cost, functionality, user-friendliness, reliability, technical support, and integration capability. Three ERP alternatives are assessed to define the most suitable system for a manufacturing company aiming to optimize its production and inventory management. The Entropy method objectively determines the weights of the criteria, while the Multi-MOORA method ranks the ERP alternatives. This comprehensive and unbiased selection process underscores the importance of a systematic approach in ERP system evaluation. By leveraging advanced decision-making techniques, organizations can make informed choices that enhance operational efficiency, drive innovation, and maintain a competitive edge. The study highlights the critical role of ERP systems and the necessity of using robust evaluation methods to ensure the selected system aligns with the organization's strategic goals and operational needs.

Keywords

• Enterprise Resource Planning
• Entropy Method
• Multi-Criteria Decision-Making
• Multi-MOORA Method

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