Research On Risk Assessment And Decision Making Of Production Line Investment In Company A

How to effectively expand manufacturing capacity and enhance the investment benefit are the two questions which related to the basics of a company’s sustainable growth in the market place. As company A is expanding its production capacity it become more and more critical on how to assess risk and make investment decision effectively.Based on the study to theory of risk assessment and investment decision-making, the current situation in these aspects is analysised and the existing problems in company A are addressed accordingly. Regarding the findings, a method of optimizing risk management and investment decision-making process was setup:Firstly, a detailed risk management index system was set up and their weight and total risk value are calculated with method of "analytic hierarchy process"(AHP); at the same time the PDRI was used as complemental method to evaluate the risk. Then base on the method of "System Dynamics" the synthetical evaluation method to production line investment decision-making process was set up. Finally above methods were applied to a double coated tissue tape production line investment project, suggestion was provided and it prove that above methods could effectively address the existing problems in company A.