Abstract
Article history: Received June 9, 2012 Accepted 5 July 2012 Available online July 6 2012 In today’s global and dynamic business environment, manufacturing organizations face the tremendous challenge of expanding markets and meeting the customer expectations. It compels them to lower total cost in the entire supply chain, shorten throughput time, reduce inventory, expand product choice, provide more reliable delivery dates and better customer service, improve quality, and efficiently coordinate demand, supply and production. In order to accomplish these objectives, the manufacturing organizations are turning to enterprise resource planning (ERP) system, which is an enterprise-wide information system to interlace all the necessary business functions, such as product planning, purchasing, inventory control, sales, financial and human resources into a single system having a shared database. Thus to survive in the global competitive environment, implementation of a suitable ERP system is mandatory. However, selecting a wrong ERP system may adversely affect the manufacturing organization’s overall performance. Due to limitations in available resources, complexity of ERP systems and diversity of alternatives, it is often difficult for a manufacturing organization to select and install the most suitable ERP system. In this paper, two ERP system selection problems are solved using fuzzy multi-objective optimization on the basis of ratio analysis (MOORA) method and it is observed that in both the cases, SAP is the best solution. © 2012 Growing Science Ltd. All rights reserved.
Highlights
Enterprise resource planning (ERP) is a comprehensive integrated information system comprising several configurable modules to automate the flow of material, information and financial resources among all the functions within a manufacturing organization on a common database
Wei et al (2005) presented a comprehensive method for selecting a suitable enterprise resource planning (ERP) system based on a framework which could construct the objectives of ERP selection to support the business goals and strategies of an organization, identify the appropriate attributes and set up a consistent evaluation standard for facilitating a group decision process
It is worthwhile to mention here that Nikjoo et al (2011) derived the same rankings for these three ERP system alternatives. These results suggest the feasibility, usefulness and accuracy of fuzzy MOORA method in solving ERP system selection problems
Summary
Enterprise resource planning (ERP) is a comprehensive integrated information system comprising several configurable modules to automate the flow of material, information and financial resources among all the functions within a manufacturing organization on a common database. An ERP software in market cannot fully meet the needs and expectations of organizations, because every organization runs its own business with different strategies and goals. Many manufacturing organizations install their ERP systems hurriedly without fully understanding the implications for their business or the need for compatibility with overall organizational goals and strategies. Given the significant investment in resources and time, many organizations did not achieve success in ERP implementation. The selection process for finding out the most satisfying ERP software among a set of feasible alternatives in market should be achieved using one of the proven multi-criteria decisionmaking (MCDM) methods. The application of fuzzy multi-objective optimization on the basis of ratio analysis (MOORA) method is proposed to choose the best ERP systems for two manufacturing organizations. It is proved that fuzzy MOORA method is a simple, easy to understand and accurate tool for solving decisionmaking problems having imprecise and vague evaluation data
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