Optimizing ERP readiness improvements under budgetary constraints

Sadra Ahmadi, Chung-Hsing Yeh, Rodney Lennard Martin, Elpiniki I Papageorgiou

    Research output: Contribution to journalArticleResearchpeer-review

    11 Citations (Scopus)

    Abstract

    An organization needs to be ready before implementing a complex enterprise resource planning (ERP) system. To achieve this aim, organization has to address two questions: (1) is the organization sufficiently ready to accept an ERP system and (2) what is the most cost effective plan for improving the readiness, if the organization is not sufficiently ready? . To estimate the current readiness an organization must consider the interrelationships between influential readiness factors and find the best improvement plan as a multi-objective trade-off between the two objectives of maximum readiness and lowest cost. In this paper we demonstrate how to calculate the readiness, and then solve the multi-objective optimization problem. We estimate readiness by using fuzzy cognitive maps to include all the complex causal relationships between factors. We solve the multi-objective optimization problem by using the NSGA-II evolutionary algorithm. The final result is a set of optimal improvement plans where an organization can choose which plan suits it the best.
    Original languageEnglish
    Pages (from-to)105 - 115
    Number of pages11
    JournalInternational Journal of Production Economics
    Volume161
    DOIs
    Publication statusPublished - 2015

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