What is TOPSIS method in Multi-criteria Decision making?

it stand for Technique For Order preference BY Similarity to Ideal Situation The principle behind TOPSIS is simple: The chosen alternative should be as close to the ideal solution as possible and as far from the negative-ideal solution as possible. The ideal solution is formed as a composite of the best performance values exhibited (in the decision matrix) by any alternative for each attribute. The negative-ideal solution is the composite of the worst performance values. Proximity to each of these performance poles is measured in the Euclidean sense (e.g., square root of the sum of the squared distances along each axis in the "attribute space"), with

optional weighting of each attribute. Read more: http://wiki.answers.com/Q/What_is_TOPSIS_method_in_Multicriteria_Decision_making#ixzz1aIruwStO

Abstract
Multiple attribute decision making (MADM) is an important part of modern decision science. It has been extensively applied to various areas such as society, economics, military, management, etc., and has been receiving more and more attention over the last decades. The paper transforms a MADM problem with triangular-fuzzy-valued weight into a MADM problem with triangularfuzzy-valued indexes by introducing quantity multiplication operation of triangular fuzzy number. On this basis, it gives definitions of positive ideal plan and negative ideal plan of MADM problems with triangular-fuzzy-valued indexes, and by which gives TOPSIS to MADM problem with triangular -fuzzy-valued weight. This method is simple, practical and demands less information. A concrete example given at the end of the paper shows the process of the method.