Technique for Order Preference

by Similarity to Ideal Solution

(TOPSIS)
1 TOPSIS Method in MADM
Origin and History
1980: development by Kwangsun Yoon and
Hwang Ching-Lai
Yoon, K., System Selection by Multiple
Attribute Decision Making, Ph. D.
Dissertation, Kansas State University,
Manhattan, Kansas, 1980.
Yoon, K. and C. L. Hwang, TOPSIS
(Technique for Order Preference by
Similarity to Ideal Solution)- A Multiple
Attribute Decision Making, a paper to be
published, 1980.
2 TOPSIS Method in MADM
Basic Concept
l The chosen Alternative should have the
shortest distance from the ideal solution
and the farthest from the negative-ideal
solution.
3 TOPSIS Method in MADM
Basic Concept
It is very difficult to justify the selection of A
1
or A
2

A
+

A
-

A
1

A
2

.
.
.
.
.
. .
.
.
A
t
t
r
i
b
u
t
e

X
2

(
i
n
c
r
e
a
s
i
n
g

p
r
e
f
e
r
e
n
c
e
)

Attribute X
1
(increasing preference)
4 TOPSIS Method in MADM
Decision Matrix
l m Alternative, n Attributes (or criteria)

=
x x x x
x x x x
x x x x
x x x x
A
A
A
A
x x x x
mn m m m
n
n
n
m
n
D
. . .
. . . .
. . . .
. . . .
. . .
. . .
. . .
.
.
.
. . .
3 2 1
3 33 32 31
2 23 22 21
1 13 12 11
3
2
1
3 2 1
5 TOPSIS Method in MADM
Hypothesis-1
l Each Attribute in the Decision Matrix
takes either monotonically increasing or
monotonically decreasing utility
6 TOPSIS Method in MADM
Hypothesis-2
l A Set of Weights for the Attributes is
required
7 TOPSIS Method in MADM
Hypothesis-3
l Any Outcome which is expressed in a
non-numerical way, should be quantified
through the appropriate scaling
technique
8 TOPSIS Method in MADM
Steps-1
l Construct the Normalized Decision Matrix
To transform the various attribute dimensions
into non-dimensional attributes, which allows
comparison across the attributes

=
=
m
i
ij
ij
ij
x
x
r
1
2
9 TOPSIS Method in MADM
Steps-2
l Construct the Weighted Normalized Decision
Matrix

=
r w r w r w r w
r w r w r w r w
r w r w r w r w
v v v v
v v v v
v v v v
mn n mj j m m
in n ij j i i
n n ij j
mn mj m m
in ij i i
n j
V
. . . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . . . .
. . . . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . .
. . . . . .
2 2 1 1
2 2 1 1
1 12 2 11 1
2 1
2 1
1 1 12 11
10 TOPSIS Method in MADM
Steps-3
l Determine Ideal and Negative-Ideal Solutions

= =

= =
=
= =
=
= =

+ + + +
+
criteria t with associated j n j
criteria benefit with associated j n j J where
m i j J j
m i j J j
J
v v v v
J v v A
v v v v
J v v A
n j
ij
i
ij
i
n j
ij
i
ij
i
cos ,..., 2 , 1
,..., 2 , 1
} ,..., ,..., , {
} ,... 2 , 1 ) max ( ), min {(
} ,..., ,..., , {
} ,... 2 , 1 ) min ( ), max {(
'
2 1
'
2 1
'
11 TOPSIS Method in MADM
Steps-4
l Calculate the Separation Measure:
Ideal Separation
Negative-Ideal Separation
m i
n
j
j ij i
v v s
,..., 2 , 1 ) (
1
2
= =

=
+ +
m i
n
j
j ij i
v v s
,..., 2 , 1 ) (
1
2
= =

=

12 TOPSIS Method in MADM
Steps-5
l Calculate the Relative Closeness to the Ideal
Solution
A A c
A A c
c
s s
s
c
i i
i i
i
i i
i
i
if
if
m i

+
+
+

= =
= =
= < <
+
=
0
1
,..., 2 , 1 , 1 0 ,
) (
*
*
*
13 TOPSIS Method in MADM
Steps-6
l Rank the preference order
A set of alternatives can now be preference
ranked according to the descending order of c
i
*
14 TOPSIS Method in MADM
An example of using
TOPSIS Method
Weight 0.1 0.4 0.3 0.2
Civic
Saturn
Ford
Mazda
7 9 9 8
8 7 8 7
9 6 8 9
6 7 8 6
Style
Reliability Fuel Eco.
Cost
15 TOPSIS Method in MADM
Steps of TOPSIS
l Step 1: Calculate (x
2
ij
)
1/2
for each column
and divide each column by that to get r
ij
Civic
Saturn
Ford
Mazda
0.46 0.61 0.54 0.53
0.53 0.48 0.48 0.46
0.59 0.41 0.48 0.59
0.40 0.48 0.48 0.40
Style Rel.
Fuel Cost
16 TOPSIS Method in MADM
Steps of TOPSIS
l Step 2 : Multiply each Column by w
j
to get V
ij
.
Saturn
Ford
Civic
Mazda
Style Rel. Fuel
Cost
0.046 0.244 0.162 0.106
0.053 0.192 0.144 0.092
0.059 0.164 0.144 0.118
0.040 0.192 0.144 0.080
17 TOPSIS Method in MADM
Steps of TOPSIS
Step 3 (a): Determine Ideal Solution A*.
A* = {0.059, 0.244, 0.162, 0.080}
Style Rel. Fuel
Saturn
Ford
Civic
Mazda
Cost
0.046 0.244 0.162 0.106
0.053 0.192 0.144 0.092
0.059 0.164 0.144 0.118
0.040 0.192 0.144 0.080
18 TOPSIS Method in MADM
Steps of TOPSIS
Step 3 (b): Find Negative Ideal Solution A
-
.
A
-
= {0.040, 0.164, 0.144, 0.118}
Style Rel. Fuel
Saturn
Ford
0.046 0.244 0.162 0.106
0.053 0.192 0.144 0.092
0.059 0.164 0.144 0.118
Civic
Mazda 0.040 0.192 0.144 0.080
Cost
19 TOPSIS Method in MADM
Steps of TOPSIS
Step 4 (a): Determine Separation From Ideal Solution
A* = {0.059, 0.244, 0.162, 0.080}
S
i
*
= [ (v
j
*
v
ij
)
2
]

for each row

j
Style Rel. Fuel
Saturn
Ford
(.046-.059)
2
(.244-.244)
2
(0)
2
(.026)
2
Civic
Mazda
Cost
(.053-.059)
2
(.192-.244)
2
(-.018)
2
(.012)
2
(.053-.059)
2
(.164-.244)
2
(-.018)
2
(.038)
2
(.053-.059)
2
(.192-.244)
2
(-.018)
2
(.0)
2
20 TOPSIS Method in MADM
Steps of TOPSIS
Step 4 (a): Determine Separation From Ideal
Solution S
i
*
Saturn
Ford
0.000845 0.029
0.003208 0.057
0.008186 0.090
Civic
Mazda 0.003389 0.058
(v
j
*
v
ij
)
2
S
i
* = [ (v
j
*
v
ij
)
2
]

21 TOPSIS Method in MADM

Steps of TOPSIS
Step 4: Determine Separation From Negative
Ideal Solution S
i
-
(v
j
-
v
ij
)
2 Si
-
= [ (v
j
-
v
ij
)2 ]

Saturn
Ford
0.006904 0.083
0.001629 0.040
0.000361 0.019
Civic
Mazda
0.002228 0.047
22 TOPSIS Method in MADM
Steps of TOPSIS
Step 5: Calculate the relative closeness to the
ideal solution Ci* = S
-
i
/ (S
i
*
+S
-
i
)
S
-
i
/(S
i
*
+ S
-
i
) Ci*
Saturn
Ford
0.083/0.112 0.74 BEST
0.040/0.097 0.41
0.019/0.109 0.17 WORSE
Civic
Mazda 0.047/0.105 0.45
23 TOPSIS Method in MADM