Citation:

Rangga Randika Munggaran, Santi Novani. "Strategic Investment Decision-Making for Modernizing PT XYZ’s Production Facility: an AHP Approach" International Research Journal of Economics and Management Studies, Vol. 4, No. 5, pp. 395-408, 2025.

Abstract:

PT XYZ faces significant challenges in modernizing its aging weapon production lines. This study aims to support strategic investment decision-making to ensure operational competitiveness. A structured Multi-Criteria Decision Analysis (MCDA) framework was developed by integrating the Kepner-Tregoe decision analysis and the Analytic Hierarchy Process (AHP). The study identified nine main criteria and 22 sub-criteria through thematic analysis and expert validation. Primary data were collected via in-depth interviews and internal documentation. The AHP model prioritized investment alternatives based on expert judgment. The analysis resulted in nine prioritized machine and equipment investments, including CNC machinery, automated inspection systems, collaborative robotics, and other technologies supporting productivity, precision, and automation. These investments reflect PT XYZ’s strategic need for efficiency, flexibility, and long-term scalability. This study offers practical value in guiding capital allocation and contributes academically to structured decision-making models in strategic industrial environments.

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Keywords:

MCDA, AHP, Investment Decision, Production Modernization, Defense Industry.