Information Technology Implementation Prioritization in Supply Chain: An Integrated Multi Criteria Decision Making Approach

The increasing rate of technology growth has resulted in decrease in cost of information. These technologies are helpful in coordinating the activities resulting in effective management of the supply chain. Literature shows that the use of Information Technology (IT) plays an important role in managing the processes of SCM. This has resulted in increasing use of IT in SCM. The computerization of SCM processes, if implemented in one go may result in failure. IT implementation prioritization in supply chain is a major issue before the planner as there is no clear cut formula to solve this problem. This paper considers components of SCM like material management, purchase management, production management, logistics and distribution and customer interface for IT implementation prioritization. Two multicriteria decision making methods (MCDM) viz. analytical hierarchy process (AHP) and a technique for order preference by similarity to ideal solution (TOPSIS) are used in this paper. The novelty of the paper lies in integration of AHP and TOPSIS methods for IT implementation prioritization. The weights of the criterions and the alternatives are calculated using AHP method which is used as an input for TOPSIS analysis for prioritization of IT implementation. DOI: 10.4018/978-1-4666-0918-1.ch002