Open-Source ERP Systems Selection: An Integrated Method based on Fuzzy AHP -TOPSIS

Muhammad Faisal Ibrahim 1, Taufik Kurrahman 2, Dana Marsetiya Utama 3*
1 Departement of Logistics Engineering, Universitas Internasional Semen Indonesia, Indonesia
2 Department of Shipping and Transportation Management, National Taiwan Ocean University,
Taiwan
3 Departement of Industrial Engineering, Universitas Muhammadiyah MalangIndonesia
dana@umm.ac.id (Corresponding Author)

Abstract

The Enterprise Resource Planning (ERP) system is a software solution that facilitates the integration of a company's business processes to enhance its efficiency. The utilization of licensed ERP systems, which entail significant costs, excludes Small and Medium Enterprises (SMEs) from accessing such systems. Consequently, SMEs require open-source ERP systems. This study aims to identify the essential criteria and sub-criteria that must be prioritized in the selection of open-source ERP systems. This study also aims to determine the ideal open-source ERP system alternatives for SMEs by incorporating the Fuzzy Analytic Hierarchy Process (AHP)- Fuzzy Technique for Order Preference by Similarities to Ideal Solution (TOPSIS) methodology. Five criteria and 19 sub-criteria are used to select open-source ERP systems. A case study is presented on a Transportation Service provider SME in Indonesia with 11 alternative open-source ERP systems selected for this problem. The findings indicate that the Package criteria hold the most significant importance in selecting open-source ERP systems, owing to their potential influence on the associated costs and complexities during implementation. Moreover, the crucial sub-criteria for selecting an open-source ERP system are the accommodating logistics service business processes, support and maintenance cost, and consultant and implementation cost. Meanwhile, according to the analysis conducted on the 11 open-source ERP systems, it has been determined that the 10th alternative open-source ERP system is the top-ranked option. This study contributes significantly to the existing literature on open-source ERP systems by identifying the most suitable open-source ERP system alternative for SMEs and highlighting the critical selection criteria for such systems. Additionally, the findings provide practical recommendations and instructions for enterprises aiming to enhance their financial and operational performance.

Keywords: Selection, Enterprise resource planning, ERP, Fuzzy AHP, Fuzzy TOPSIS

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