Abstract
PurposeThis paper aims to study an enterprise resource planning (ERP) software selection problem. The primary goal of this paper is to propose a two‐phase procedure to select an ERP vendor and a suitable ERP software.Design/methodology/approachIn the first phase of the proposed method the preliminary actions – such as constructing a project team, collecting all possible information about ERP vendors and systems, and identifying the ERP system characteristics – are established. In the second phase, the authors present a modular approach to ERP vendor and software selection and propose a 0‐1 programming model to minimize total costs associated with procurement and integration expenditures.FindingsThe proposed approach and the model are considered to be more useful for small manufacturing enterprises (SMEs).Originality/valueIn using the model for analyzing the data about a real case study that is a commercial SME and based on obtained results, some parameter values of the model for all SMEs are suggested.
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