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TOPSIS Method for Decision Making

The TOPSIS method is a multi-criteria decision analysis technique that chooses alternatives based on the concept of relative closeness to the ideal solution. It involves 6 steps: 1) constructing a decision matrix, 2) normalizing the matrix and determining weights, 3) identifying positive and negative ideal solutions, 4) calculating distances from each ideal, 5) determining a closeness coefficient for each alternative, 6) ranking alternatives based on closeness coefficients.

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40 views2 pages

TOPSIS Method for Decision Making

The TOPSIS method is a multi-criteria decision analysis technique that chooses alternatives based on the concept of relative closeness to the ideal solution. It involves 6 steps: 1) constructing a decision matrix, 2) normalizing the matrix and determining weights, 3) identifying positive and negative ideal solutions, 4) calculating distances from each ideal, 5) determining a closeness coefficient for each alternative, 6) ranking alternatives based on closeness coefficients.

Uploaded by

Rajaa Kodad
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TOPSIS Method

Step 1: Decision matrix X =(x ij )mxn is normalized according to:

x ij
r ij = (2)
m

√∑
i=1
2
x
ij

where x ij is the rating of i -th alternative for criteria C j .

Step 2: Weighted normalized decision matrix V =( vij )mxnis obtained by multiplying normalized
matrix with the weights of the criteria:

v 11 ⋯ v1 n
V =(vij )mxn= ⋮ ⋱
[
vm1 ⋯ ]
⋮ =r ij × w ij
v mn
(3)

 Index Weight Determining (Entropy weight)

Determining the weight of each index through entropy weight method, and the calculation process
is as follows:

1) Calculating the proportion p} rsub {ij} ¿ of index ij: p} rsub {ij} ¿ is calculated as in (4).

x ij
pij = m (4)
∑ xij
i=1

2) Calculating the entropy e} rsub {j} ¿ of index j: e} rsub {j} ¿ is calculated as in (5).

m
(5)
e j =−k ∑ pij × ln p ij
i=1

The “k” in (5) can be calculated in (6),

k =1/ln m (6)

3) Calculating the entropy weight “w j ” of index j: “w j ” is calculated as in (7).


(1−e j)
w j= n (7)
∑ (1−e j )
j=1

Step 3: Positive ideal solution (PIS) and negative ideal solution (NIS) are determined:

where = max (8)


v+¿ ¿
PIS=¿ j ( v ij )

where = min (9)


NIS=¿ v−¿¿
j ( v ij )

Step 4: The distance of each alternative from PIS and NIS are calculated:

n
d +¿¿
i
=
√ ∑ ¿¿¿¿
j=1
(10)

n
d −¿
i
¿=
√∑j=1
¿¿¿¿
(11)

Step 5: The closeness coefficient of each alternative (CC i ) is calculated:

d−¿
i (12)
CC i= ¿ ¿
d¿ ¿ ¿

Step 6: The ranking of the alternatives is determined according to CC i values: The bigger CC i ,
the better the relevant alternative. In other words, the alternative with the highest closeness
coefficient is determined as the best alternative.

References

[1] C.-H. Yeh, "A problem-based selection of multi-attribute decision -making methods",
International Transactions in Operational Research 9, PP.169-181, 2002.
[2] M. Zeleny, Multiple Criteria Decision Making, McGraw-Hill, New York, 1982.

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