3rd Asia Pacific International Conference on Industrial Engineering and Operations Management

Improvement of ERP Case Study Considering Sensitivity Analysis: A Techno-economic Study

0 Paper Citations
Track: Engineering Economy

Enterprise Resource Planning (ERP) is one of the solutions to solving problems related to supply chain visibility because it creates a framework that integrates the company's internal business processes. Companies that implement ERP can be integrated directly with suppliers and customers. This article discusses the improvement of the article by Mairawati et al. (2018), related to the analysis of the feasibility of investing in financial software, namely Enterprise Resource Planning (ERP). Previous research has evaluated the economic approach using investment feasibility criteria, the value of Net Present Value >0, Payback Period <5 years (economic age), and  implementation that results in savings of IDR 72,000,000. Then, this study add aspects of techno-economic calculations makes suggestions for improvement that have not been studied, such as income tax, depreciation, and sensitivity analysis to get more accurate results. The results show that the investment has Net Present Value of IDR 190,071,261.75, the Payback Period is 6 months, which means that the company will obtain the profit is much greater than the expected profit. So, the investment can be said that feasible. In addition, the results of the sensitivity analysis also show that the initial investment and annual costs have the same relationship with annual costs, a negative relationship. An increase of initial investment or annual fee will decrease the annual worth received and vice versa

Published in: 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia

Publisher: IEOM Society International
Date of Conference: September 13-15, 2022

ISBN: 978-1-7923-9162-0
ISSN/E-ISSN: 2169-8767