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Purpose -This paper aims to study an enterprise resource planning (ERP) software selection problem. The primary goal of this paper is to propose a two-phase procedure to select an ERP vendor and a suitable ERP software. Design/methodology/approach -In the first phase of the proposed method the preliminary actions -such as constructing a project team, collecting all possible information about ERP vendors and systems, and identifying the ERP system characteristics -are established. In the second phase, the authors present a modular approach to ERP vendor and software selection and propose a 0-1 programming model to minimize total costs associated with procurement and integration expenditures. Findings -The proposed approach and the model are considered to be more useful for small manufacturing enterprises (SMEs). Originality/value -In using the model for analyzing the data about a real case study that is a commercial SME and based on obtained results, some parameter values of the model for all SMEs are suggested.

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