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A Hybrid MCDM Approach for Solving the ERP System Selection Problem with Application to Steel Industry

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  • Ahmad Jafarnejad

    (University of Tehran, Iran)

  • Manoucher Ansari

    (University of Tehran, Iran)

  • Hossein Rahmany Youshanlouei

    (Young Research Club, Salmas Branch–Islamic Azad University, Iran)

  • Mohammad Mood

    (University of Tehran, Iran)

Abstract

Selecting a proper system of Enterprise Resource Planning (ERP) is a major challenge for enterprise managers. Heavy expenses of incorrect decisions in selection of ERP systems have made academics and managers consider this phase as highly important. Several research studies proposed different approaches to selecting the ERP and many case studies of organizational experiences have been published. However, there has been less regard for simultaneous use of the findings of academic studies and judgments of industrial experts or organization mangers for making the most appropriate choice. This study proposes a combined multiple-criteria decision-making (MCDM) approach through which both previous studies and judgments of industrial experts or organization managers would be integrated in order to select the proper ERP system. Having studied the literature comprehensively and conducted interviews with experts and managers, this approach will determine the most important criteria in ERP selection using Shannon entropy technique. Then, based on the judgments obtained from experts and using DEMATEL technique, these criteria will be classified into the two groups of “Cause” and “Effect” and the most appropriate choice will be selected using Fuzzy AHP technique. Finally, a case study is conducted to demonstrate and prove the applicability of the proposed approach.

Suggested Citation

  • Ahmad Jafarnejad & Manoucher Ansari & Hossein Rahmany Youshanlouei & Mohammad Mood, 2012. "A Hybrid MCDM Approach for Solving the ERP System Selection Problem with Application to Steel Industry," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 8(3), pages 54-73, July.
  • Handle: RePEc:igg:jeis00:v:8:y:2012:i:3:p:54-73
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    Cited by:

    1. Thi-Ly Nguyen & Phi-Hung Nguyen & Hong-Anh Pham & Thi-Giang Nguyen & Duc-Thinh Nguyen & Thi-Hoai Tran & Hong-Cham Le & Huong-Thuy Phung, 2022. "A Novel Integrating Data Envelopment Analysis and Spherical Fuzzy MCDM Approach for Sustainable Supplier Selection in Steel Industry," Mathematics, MDPI, vol. 10(11), pages 1-28, June.
    2. Emre Çalişkan & Erdem Aksakal & Saliha Çetinyokuş & Tahsin Çetinyokuş, 2019. "Hybrid Use of Likert Scale-Based AHP and PROMETHEE Methods for Hazard Analysis and Consequence Modeling (HACM) Software Selection," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(05), pages 1689-1715, September.
    3. Akshay Hinduja & Manju Pandey, 2019. "An Integrated Intuitionistic Fuzzy MCDM Approach to Select Cloud-Based ERP System for SMEs," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(06), pages 1875-1908, November.

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