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Lecture 10

TOPSIS is a decision-making method that evaluates alternatives based on their distance to an ideal solution and a negative ideal solution. The process involves constructing normalized and weighted decision matrices, determining ideal and negative ideal solutions, calculating separation measures, and finding the relative closeness to the ideal solution. An example demonstrates the application of TOPSIS with alternatives and their respective scores across various criteria.

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5 views

Lecture 10

TOPSIS is a decision-making method that evaluates alternatives based on their distance to an ideal solution and a negative ideal solution. The process involves constructing normalized and weighted decision matrices, determining ideal and negative ideal solutions, calculating separation measures, and finding the relative closeness to the ideal solution. An example demonstrates the application of TOPSIS with alternatives and their respective scores across various criteria.

Uploaded by

Sani
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution)

 In this method two artificial alternatives are


hypothesized:

 Ideal alternative: the one which has the best level


for all attributes considered.
 Negative ideal alternative: the one which has the
worst attribute values.

 TOPSIS selects the alternative that is the closest to


the ideal solution and farthest from negative ideal
alternative.
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Input to TOPSIS
 TOPSIS assumes that we have m alternatives
(options) and n attributes/criteria and we have the
score of each option with respect to each criterion.

 Let xij score of option i with respect to criterion j


We have a matrix X = (xij) mn matrix.
 Let J be the set of benefit attributes or criteria
(more is better)
 Let J' be the set of negative attributes or criteria
(less is better)
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Steps of TOPSIS
 Step 1: Construct normalized decision matrix.
 This step transforms various attribute dimensions into
non-dimensional attributes, which allows comparisons
across criteria.

 Normalize scores or data as follows:

rij = xij/ √(x2ij) for i = 1, …, m; j = 1, …, n


i

3
Steps of TOPSIS
 Step 2: Construct the weighted normalized decision
matrix.
 Assume we have a set of weights for each criteria wj
for j = 1,…n.
 Multiply each column of the normalized decision
matrix by its associated weight.
 An element of the new matrix is:

vij = wj rij

4
Steps of TOPSIS
 Step 3: Determine the ideal and negative ideal
solutions.
 Ideal solution.
A* = { v1* , …, vn*}, where
vj* ={ max (vij) if j  J ; min (vij) if j  J' }
i i

 Negative ideal solution.


A' = { v1' , …, vn' }, where
v' = { min (vij) if j  J ; max (vij) if j  J' }
i i

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Steps of TOPSIS
 Step 4: Calculate the separation measures for each
alternative.

 The separation from the ideal alternative is:


Si * = [  (vj*– vij)2 ] ½ i = 1, …, m
j

 Similarly, the separation from the negative ideal


alternative is:
S'i = [  (vj' – vij)2 ] ½ i = 1, …, m
j

6
Steps of TOPSIS
 Step 5: Calculate the relative closeness to the ideal
solution Ci*

Ci* = S'i / (Si* +S'i ) , 0  Ci*  1

Select the Alternative with Ci* closest to 1.

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An example of using TOPSIS method
Weight 0.1 0.4 0.3 0.2

Style Reliability Fuel Eco. Cost


Civic 7 9 9 8

Saturn 8 7 8 7

Ford 9 6 8 9

Mazda 6 7 8 6

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Steps of TOPSIS
 Step 1: calculate (x2ij )1/2 for each column and
divide each column by that to get rij

Style Rel. Fuel Cost


Civic 0.46 0.61 0.54 0.53
Saturn 0.53 0.48 0.48 0.46
Ford 0.59 0.41 0.48 0.59
Mazda 0.40 0.48 0.48 0.40

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Steps of TOPSIS
 Step 2 : multiply each column by wj to get vij.

Style Rel. Fuel


Cost
Civic 0.046 0.244 0.162 0.106
Saturn 0.053 0.192 0.144 0.092
Ford 0.059 0.164 0.144 0.118
Mazda 0.040 0.192 0.144 0.080

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Steps of TOPSIS
Step 3 (a): determine ideal solution A*.
A* = {0.059, 0.244, 0.162, 0.080}

Style Rel. Fuel Cost


Civic 0.046 0.244 0.162 0.106
Saturn 0.053 0.192 0.144 0.092
Ford 0.059 0.164 0.144 0.118
Mazda 0.040 0.192 0.144 0.080
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Steps of TOPSIS
Step 3 (b): find negative ideal solution A'.
A' = {0.040, 0.164, 0.144, 0.118}

Style Rel. Fuel Cost


Civic 0.046 0.244 0.162 0.106
Saturn 0.053 0.192 0.144 0.092

Ford 0.059 0.164 0.144 0.118

Mazda 0.040 0.192 0.144 0.080


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Steps of TOPSIS
Step 4 (a): determine separation from ideal solution A* =
{0.059, 0.244, 0.162, 0.080}
Si* = [  (vj*– vij)2 ] ½ for each row
j

Style Rel. Fuel Cost


Civic (.046-.059)2 (.244-.244)2 (0)2 (.026)2

Saturn (.053-.059)2 (.192-.244)2 (-.018)2 (.012)2

Ford (.059-.059)2 (.164-.244)2 (-.018)2 (.038)2


Mazda (.040-.059)2 (.192-.244)2 (-.018)2 (.0)2
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Steps of TOPSIS
Step 4 (a): determine separation from ideal solution Si*

(vj*–vij)2 Si* = [  (vj*– vij)2 ] ½


Civic 0.000845 0.029

Saturn 0.003208 0.057

Ford 0.008186 0.090

Mazda 0.003389 0.058


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Steps of TOPSIS
Step 4: determine separation from negative ideal solution
Si'

(vj'–vij)2 Si' = [  (vj'– vij)2 ] ½

Civic 0.006904 0.083

Saturn 0.001629 0.040

Ford 0.000361 0.019


Mazda 0.002228 0.047
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Steps of TOPSIS
Step 5: Calculate the relative closeness to the ideal
solution Ci* = S'i / (Si* +S'i )

S'i /(Si*+S'i) Ci*

Civic 0.083/0.112 0.74  BEST

Saturn 0.040/0.097 0.41

Ford 0.019/0.109 0.17

Mazda 0.047/0.105 0.45


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