An integrated model to select an ERP system for Chinese small- and medium-sized enterprise under uncertainty

Abstract

Enterprise Resource Planning (ERP) system is a vital investment that can significantly affect future competitiveness and performance of small-and medium-sized enterprises (SMEs). Selecting the best desirable ERP software covering both qualitative and quantitative factors has been the most critical problem for a long time. On the other hand, multiple criteria decision making has been found to be a useful approach to analyze conflicting factors. Qualitative criteria are often accompanied by ambiguities and vagueness. This makes fuzzy and grey logic become more natural approaches to handle this kind of problem. This paper presents a new approach for the selection of SME-specific ERP systems. Firstly, criteria for SMEs in China to evaluate the most suitable ERP system are put forward using group-discussing and anonymous questionnaire methods. An effective and practical algorithm, which is integrated of modified Delphi, analytic hierarchy process, fuzzy comprehensive evaluation and grey relational analysis, is utilized to convert the qualitative description to quantitative data to select the most appropriate alternative in the presence of vagueness and uncertainty. Finally, the potential use of the proposed model is illustrated through a case study.

Keywords:

• enterprise resource planning
• SME
• software selection
• mulit-criteria decision making
• fuzzy logic
• grey theory

Additional information

Notes on contributors

Yu-Rong Zeng

Yu-Rong ZENG. PhD candidate at the School of Management of Huazhong University of Science and Technology. She is also an Associate Professor at the School of Information Engineering of Hubei University of Economics. Author and co-author of more than 20 articles in scientific journals including Expert Systems, Knowledge-based Systems, and International Journal of Fuzzy Systems. Research interests: Decision Making and Information Management.

Lin Wang

Lin WANG. PhD, Professor at the School of Management of Huazhong University of Science and Technology. Author and co-author of more than 20 articles in scientific journals including International Journal of Production Economics, Expert Systems with Applications, Knowledge-based Systems, and International Journal of Fuzzy Systems. Research interests: Supply Chain Management, Decision Making, and Optimization Algorithms. He is the corresponding author of this paper.

Xian-Hao Xu

Xian-Hao XU. PhD, Professor at the School of Management of Huazhong University of Science and Technology. Author and co-author of more than 20 articles in scientific journals including Flexible Services and Manufacturing and International Journal of Production Research. Research interests: Supply Chain Management and Logistics Management.