Product Portfolio Optimization Using Multi-Criteria Decision Analysis

Globalization increases the potential for business expansion, which creates more opportunities in the market. The competition and expansion in the market create varieties of products to satisfy human needs and make it more difficult for the product planner to maintain huge piles of stock, resulting in high inventory costs to meet customer demands on time. Product portfolio optimization, as a tool of strategic management for companies in the competitive market, plays a vital role, helping businesses to constantly strive to maximize their returns while minimizing risks. This study explores Multi-Criteria Decision Analysis (MCDA) by using real-world applications of the fuzzy Analytical Hierarchy Process (AHP) and fuzzy TOPSIS, which offer a comprehensive approach by integrating quantitative and qualitative factors, to evaluate and prioritize products within a company’s portfolio, specifically focusing on the product of lead–acid storage batteries from a renowned organization in Bangladesh, aiming to provide valuable insights for businesses seeking to enhance their decision-making processes and achieve sustainable growth.