MCDMDecision-makingRankingMath steps

Technique for Order of Preference by Similarity to Ideal Solution

OriginatorHwang, C. L., Yoon, K.Year1981Sources1Related methods42

TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) is a ranking multi-criteria decision-making (MCDM) method introduced by Hwang, C. L., Yoon, K. in 1981. It turns a decision matrix of alternatives scored on multiple criteria into a structured, reproducible result.

Key highlights

  • Follows a transparent, reproducible computational procedure that can be audited step by step.
  • Handles multiple criteria of differing scales and units within a single decision matrix.

Intuition

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How it works

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When to use it

C* ∈ [0,1]. Higher C* means the alternative is closer (in weighted Euclidean distance) to the positive-ideal A⁺ and farther from the anti-ideal A⁻. Rank alternatives in descending C* order.

Strengths & limitations

Strengths
  • Follows a transparent, reproducible computational procedure that can be audited step by step.
  • Handles multiple criteria of differing scales and units within a single decision matrix.
Limitations
  • May exhibit rank reversal when alternatives are added to or removed from the set.
  • Assumes full compensation — a strong score on one criterion can offset a weak score on another.

Common pitfalls

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Sources

  1. 1.
    Hwang, C. L., Yoon, K. (1981). Multiple Attribute Decision Making: Methods and Applications — A State-of-the-Art Survey. Lecture Notes in Economics and Mathematical Systems, Vol. 186, Springer-Verlag

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ScholarGate. (2026, June 2). TOPSIS. ScholarGate. https://scholargate.app/decision-making/topsis

Technique for Order of Preference by Similarity to Ideal Solution