Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE Method

The use of Supply Chain Management (SCM) systems allows for the improvement of an organization’s operations. Companies use many Enterprise Resource Planning (ERP) systems that also include SCM functionalities. As a result, the selection of the right system to be used in the enterprise is a complex p...

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Main Authors: Paweł Ziemba, Izabela Gago
Format: Article
Language:English
Published: MDPI AG 2022-05-01
Series:Symmetry
Subjects:
Online Access:https://www.mdpi.com/2073-8994/14/5/1043
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author Paweł Ziemba
Izabela Gago
author_facet Paweł Ziemba
Izabela Gago
author_sort Paweł Ziemba
collection DOAJ
description The use of Supply Chain Management (SCM) systems allows for the improvement of an organization’s operations. Companies use many Enterprise Resource Planning (ERP) systems that also include SCM functionalities. As a result, the selection of the right system to be used in the enterprise is a complex problem. The use of multi-criteria decision aid (MCDA) methods provides the possibility of system ordering in a ranking, based on an asymmetric preference relation, symmetric indifference and incomparability relations. The aim of the article is to evaluate ERP systems in terms of their support for SCM. The scientific contribution of the article is the study of the impact of various degrees of uncertainty of the decision-maker’s preferences on the evaluation results and the analysis of the impact of various approaches to the preferences of alternatives on the final ranking. An approach based on MCDA Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) was used for the study. The decision model uses 12 criteria, three different preference functions and two variants of the PROMETHEE method (I and II). In this way, a total of six rankings were built, and each of them includes seven systems, supporting the management of the supply chain. As a result of the study, it was found that the highest functionality in logistics is characterized by the Oracle E-Business Suite system, which is more functional than SAP ERP and JD Edwards EnterpriseOne. The remaining analysed systems offer much less functionality. The applied approach, which was possible with the use of various preference functions, allowed three different levels of uncertainty in the preferences of decision-makers to be taken into account in the study. Moreover, the application of two different variants of the PROMETHEE method made it possible for the obtained solution to take into account the uncertainty of positions taken by individual ERP systems in the final rankings.
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spelling doaj.art-2b9b0c13945d4c6287c8c08635d7903c2023-11-23T13:20:29ZengMDPI AGSymmetry2073-89942022-05-01145104310.3390/sym14051043Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE MethodPaweł Ziemba0Izabela Gago1Institute of Management, University of Szczecin, Aleja Papieża Jana Pawła II 22A, 70-453 Szczecin, PolandTechnical Secondary School of Economics in Szczecin, 70-236 Szczecin, PolandThe use of Supply Chain Management (SCM) systems allows for the improvement of an organization’s operations. Companies use many Enterprise Resource Planning (ERP) systems that also include SCM functionalities. As a result, the selection of the right system to be used in the enterprise is a complex problem. The use of multi-criteria decision aid (MCDA) methods provides the possibility of system ordering in a ranking, based on an asymmetric preference relation, symmetric indifference and incomparability relations. The aim of the article is to evaluate ERP systems in terms of their support for SCM. The scientific contribution of the article is the study of the impact of various degrees of uncertainty of the decision-maker’s preferences on the evaluation results and the analysis of the impact of various approaches to the preferences of alternatives on the final ranking. An approach based on MCDA Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) was used for the study. The decision model uses 12 criteria, three different preference functions and two variants of the PROMETHEE method (I and II). In this way, a total of six rankings were built, and each of them includes seven systems, supporting the management of the supply chain. As a result of the study, it was found that the highest functionality in logistics is characterized by the Oracle E-Business Suite system, which is more functional than SAP ERP and JD Edwards EnterpriseOne. The remaining analysed systems offer much less functionality. The applied approach, which was possible with the use of various preference functions, allowed three different levels of uncertainty in the preferences of decision-makers to be taken into account in the study. Moreover, the application of two different variants of the PROMETHEE method made it possible for the obtained solution to take into account the uncertainty of positions taken by individual ERP systems in the final rankings.https://www.mdpi.com/2073-8994/14/5/1043preference uncertaintyPROMETHEEpreference functionssupply chain management systemsenterprise resource planning systems
spellingShingle Paweł Ziemba
Izabela Gago
Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE Method
Symmetry
preference uncertainty
PROMETHEE
preference functions
supply chain management systems
enterprise resource planning systems
title Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE Method
title_full Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE Method
title_fullStr Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE Method
title_full_unstemmed Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE Method
title_short Uncertainty of Preferences in the Assessment of Supply Chain Management Systems Using the PROMETHEE Method
title_sort uncertainty of preferences in the assessment of supply chain management systems using the promethee method
topic preference uncertainty
PROMETHEE
preference functions
supply chain management systems
enterprise resource planning systems
url https://www.mdpi.com/2073-8994/14/5/1043
work_keys_str_mv AT pawełziemba uncertaintyofpreferencesintheassessmentofsupplychainmanagementsystemsusingtheprometheemethod
AT izabelagago uncertaintyofpreferencesintheassessmentofsupplychainmanagementsystemsusingtheprometheemethod