Evaluation of ERP softwares with fuzzy AHP integrated TODIM method

Year 2018, Volume: 22 Issue: 5, 1351 - 1370, 01.10.2018

A. Çağrı Tolga

https://doi.org/10.16984/saufenbilder.380388

Cited By: 2

Abstract

Since enterprise
resource planning process is important for growing and developed private
companies due to productivity, in the business world it has found effectively its
place. ERP system softwares those are fundamental interest area of industrial
engineering, have gained much importance in recent years according to doing the
jobs productivity needs. In this study, a solution method is proposed for a
private organization that desires to re-evaluate the distributed ERP softwares
of it owns. For this, most used multi-criteria decision-making method named analytic
hieararchy process is utilized for determination of criteria weights. In
addition a risk involving process called TODIM (an MCDM method), which is based
on prospect theory, was chosen for risky and dynamic conditions in the study.
Since the Nobel prize-winning prospect theory including risk avoidance and risk
taking situations in decision-making behaviors has been integrated in TODIM's
decision-making process. This process involves ambiguities as well as risk. Furthermore,
the company's data privacy policy has been incorporated into the solution
procedure with the fuzzy logic, which takes into account these drawbacks.
Besides, it has been ensured that the cost criterion is integrated in a
detailed manner. In the real world application, a selection is made between the
renovation of the existing system alternative consisting of the scattered and
different softwares –especially stressed on built-in software that only a
majority uses-; this software’s cloud alternative and a completely different
rival software alternatives. The result of this study, which examines ERP
software selection under uncertainties by adding risk and cost measures, has
been influential on enterprise’s preferences about this project.

Keywords

ERP systems, Multi-criteria decision making, Fuzzy logic, TODIM, Equal uniform annual cost

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