ERP ISV investment analysis under fuzzy decision environment

Authors:
Huo Lingyu;Liu Bingwu;Li Juntao;Huo Lingyu
Affiliations:
School of Information, Beijing Wuzi University, City Beijing, P.R.China;School of Information, Beijing Wuzi University, City Beijing, P.R.China;School of Information, Beijing Wuzi University, City Beijing, P.R.China;School of Management and Economics, Beijing Institute of Technology, City Beijing, P.R.China
Venue:
FSKD'09 Proceedings of the 6th international conference on Fuzzy systems and knowledge discovery - Volume 3
Year:
2009

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Abstract

An ERP (enterprise resource planning) ISV (independent software vender) investment decision model is considered in fuzzy decision environment. The size of the market, the sensitivity of demand to the price and quality, and fixed cost are treated as fuzzy variables. The Graded Mean Integration Representation method is used to solve the fuzzy profit, and equilibrium price, quality, demand, total cost and profit of the model are given. By using this decision model, the decisionmaker's fuzzy assessment with various variables can be considered in the decision process to assure more convincing and accurate decision-making. Finally, a numerical example is given to illustrate and validate the model and conclusions. It is shown that equilibrium product quality can be improved; equilibrium price, demand and profit can be increased through ERP investments under a fuzzy decision environment.