Business Process Improvement Portfolio Selection Under Resource Constraints: An Integrated Multi-Criteria Decision and Optimization Approach

Afdiani Fathinatussakinah^*

Abstract

This study examines business process improvement portfolio selection in a resource-constrained industrial case by integrating group Analytic Hierarchy Process (AHP), Simple Additive Weighting (SAW), criterion-weight sensitivity analysis, and binary mixed-integer linear programming (MILP). Five decision makers assessed ten improvement initiatives across six benefit-oriented criteria. Group AHP generated criterion weights, SAW converted initiative performance into comparable utility values, Monte Carlo simulation examined sensitivity to ±20% perturbations in criterion weights over 10,000 iterations, and MILP selected feasible initiative combinations under investment, implementation-effort, technical-capacity, and dependency constraints. Four normalized what-if resource scenarios were evaluated. The results show that the highest-valued individual initiative is not necessarily included in the best feasible portfolio under severe resource scarcity. Across the investigated scenarios, MILP portfolios produced 10.94–36.68% higher aggregate SAW utility than sequential rank-based selection. Individual rankings showed limited preference sensitivity among the leading initiatives, while portfolio composition remained unchanged when the optimization was repeated using the 10th-percentile simulated utilities. These findings are case-specific and demonstrate the practical distinction between initiative ranking and resource-constrained implementation planning rather than general validation of a new optimization method.

Keywords

business process improvement; multi-criteria decision making; portfolio optimization; preference sensitivity; resource allocation

Cite This Article

Fathinatussakinah, A. (2026). Business Process Improvement Portfolio Selection Under Resource Constraints: An Integrated Multi-Criteria Decision and Optimization Approach. International Journal of Scientific Advances (IJSCIA), Volume 7| Issue 4: Sep – Oct 2026, Pages 463-470 URL: https://www.ijscia.com/wp-content/uploads/2026/09/Volume7-Issue5-Sep-Oct-No.1064-463-470.pdf

Volume 7 | Issue 5: Sep – Oct 2026