An ERP System Selection Model Based on Fuzzy Grey TOPSIS for SMEs

This paper presents a new fuzzy multi-criteria decision making (FMCDM) approach, which integrates the technique for order preference by the similarity to ideal solution (TOPSIS), grey relation and fuzzy set theory, for enterprise resource planning (ERP) system evaluation and selection in the small and medium-sized enterprises (SMEs). In this study, the characteristic of the alternative with respect to the criteria are represented in terms of a linguistic term set, and the weight of the criteria is described by triangular fuzzy numbers, respectively. According to the Grey theory and fuzzy set theory, a closeness coefficient is defined to determine the ranking order of all alternatives by calculating the grade of Grey relation to the fuzzy positive-ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously. Finally, an example is shown to highlight the procedure of the proposed method.