277 15 th International Research/Expert Conference ”Trends in the Development of Machinery and Associated Technology” TMT 2011, Prague, Czech Republic, 12-18 September 2011 FUZZY AHP-TOPSIS TWO STAGES METHODOLOGY FOR ERP SOFTWARE SELECTION: AN APPLICATION IN PASSENGER TRANSPORT SECTOR Nurgül Demirtaş, Özge Nalan Alp, Umut Rıfat Tuzkaya, Hayri Baraçli Yıldız Technical University Mechanical Engineering Faculty Industrial Engineering Department, Istanbul Turkey ABSTRACT Transportation that comes into existence from vital activities is natural necessity. The increased competition and the idea of arriving to destination rapidly with a minimum lost revealed the alternative transportation systems. In many stages of the transportation system, decision making tools may be used to get increased benefit. Also innovative technologies like ERP software are important to manage transportation systems effectively. In this study, the most effective ERP software is selected for a firm that services at urban passenger transport sector using two-stage fuzzy decision making technique. In the first stage, after the lack of the software application is determined, the decision of developing the new software by software development department in firm or buying a package program is given. In the second stage, if developing of the new software in firm is selected, the programming language is determined to develop the most effective ERP software application platform using fuzzy decision making technique. On the contrary, if buying a package program is chosen, the most effective package program is selected by using fuzzy decision making techniques. Keywords: Passenger Transport, Fuzzy Multi criteria decision making, ERP Software Selection, Fuzzy AHP-TOPSIS 1. INTRODUCTION When the decision making literature is considered about software selection, it is seen that many techniques are combined for a numerous application areas. Tolga and Kahraman (2009) have used fuzzy AHP to select the most appropriate software development projects. Gorener(2011) has made a decision for the optimal ERP using VIKOR method under criteria’ weights given by ANP model. Wei et.al.(2005) have presented a comprehensive framework for selecting a suitable ERP system. Jadhav and Sonar(2011) have described generic methodology for software selection. Mulebeke and Zheng (2006) have aimed to introduce a methodology, the analytical network process as a multiattribute strategic decision making approach to help in the selection of appropriate software to suit the product development process of a particular product. Yazgan et.al.(2009) have used an ANN model has been designed and trained with using ANP results in order to calculate ERP software priority. And they have represented the ANN model had been come suitable for using in the selection of ERP for another new decision. The Software selection is very important to develop firms’ efficiencies. Because of this the software selection problems and ERP selection problems have been analyzed. We have not found the software selection problems especially ERP selection problems about urban passenger transport sector.