Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard

Abstract

An enterprise resource planning system (ERP) is the information backbone of a company that integrates and automates all business operations. It is a critical issue to select the suitable ERP system which meets all the business strategies and the goals of the company. This study presents an approach to select a suitable ERP system for textile industry. Textile companies have some difficulties to implement ERP systems such as variant structure of products, production variety and unqualified human resources. At first, the vision and the strategies of the organization are checked by using balanced scorecard. According to the company’s vision, strategies and KPIs, we can prepare a request for proposal. Then ERP packages that do not meet the requirements of the company are eliminated. After strategic management phase, the proposed methodology gives advice before ERP selection. The criteria were determined and then compared according to their importance. The rest ERP system solutions were selected to evaluate. An external evaluation team consisting of ERP consultants was assigned to select one of these solutions according to the predetermined criteria. In this study, the fuzzy analytic hierarchy process, a fuzzy extension of the multi-criteria decision-making technique AHP, was used to compare these ERP system solutions. The methodology was applied for a textile manufacturing company.