Professional Documents
Culture Documents
Submitted By :
Pranav Mishra
11ID60R20
Let’s consider…
Luna wants to go on a vacation.
She has 3 options
Hogwarts
Hogsmead
e
Azkaban
How to decide..???
Let us consider…
Each option can be evaluated against
certain criteria.
Criteria for vacation destinations can
be:
◦ Entertainment
◦ Facilities
◦ Accommodation cost
◦ Travel cost
Similarly…
Selecting a source of information (library, internet,
etc…) involves various criteria such as:
Reliability of information
Time to gather information
Cost of acquiring information
Hogwarts (Table 1)
Hogsmeade (Table 2)
Azkaban (Table 3)
TOPSIS
Technique for Order Preference by Similarity to
Ideal Solution
In this method two artificial alternatives are hypothesized:
Ideal alternative: One which has the best attributes values (i.e.
max. benefit attributes and min. cost attributes)
Negative ideal alternative: One which has the worst attribute
values. (i.e. min. benefit attributes and max. cost attributes)
Similarly….
Criteria Hogwarts Hogsmeade Azkaban
(0.36+.0+0+0) 1/2
S* = 0.74 1.48 0.6
Steps involved in TOPSIS…
• Step 5 – Determine separation from negative ideal
solution.
Criteria Hogwarts Hogsmeade Azkaban
Entertainment (2.6-2.0)2 (2.28-2.0) 2 (2.0-2.0) 2
Facilities (1.1-1.1) 2 (1.1-1.1) 2 (1.26-1.1) 2
Travel cost (2.94-4.38) 2 (4.38-4.38) 2 (2.94-4.38) 2
Acc. Cost (5.12-5.12) 2 (4.4-5.12) 2 (4.4-5.12) 2
BEST
TOPSIS for supplier selection
problem.
•Consider 3 suppliers…
•S1
•S2
•S3
•3 suppliers are evaluated against 4
attributes COST ATTRIBUTE
Q1 Q3
Q2 Q4
TOPSIS for supplier selection
problem.
•Step 4 – STANDARDIZE DECISION
TABLE.
Attributes
DECISION TABLE
Supplier Q1 Q2 Q3 Q4
s
S1 .03 .95 4 4
S2 .05 .98 3.75 4.25
S3 .01 .85 4.75 8.5
√(.03²+.05²+.01² √(.95²+.98²+.85² √(4²+3.75²+4.75² √(4²+4.25²+8.5²
) ) ) )
= 0.059 = 1.608 = 7.254 = 10.31
TOPSIS for supplier selection
problem.
•Step 4 – STANDARDIZE DECISION
TABLE.
Attributes
DECISION TABLE
Supplier Q1 Q2 Q3 Q4
s
S1 .03 .95 4 4
S2 .05 .98 3.75 4.25
S3 .01 .85 4.75 8.5
√(.03²+.05²+.01² √(.95²+.98²+.85² √(4²+3.75²+4.75² √(4²+4.25²+8.5²
) ) ) )
= 0.059 = 1.608 Attributes= 7.254 = 10.31
Supplier Q1 Q2 Q3 Q4
s
S1 .03/.059 = .508
S2
S3 STANDARD DECISION TABLE
TOPSIS for supplier selection
problem.
•Step 4 – STANDARDIZE DECISION
TABLE.
Attributes
DECISION TABLE
Supplier Q1 Q2 Q3 Q4
s
S1 .03 .95 4 4
S2 .05 .98 3.75 4.25
S3 .01 .85 4.75 8.5
√(.03²+.05²+.01² √(.95²+.98²+.85² √(4²+3.75²+4.75² √(4²+4.25²+8.5²
) ) ) )
= 0.059 = 1.608 Attributes= 7.254 = 10.31
Supplier Q1 Q2 Q3 Q4
s
S1 .03/.059 = .508
S2 .05/.059 = .845
S3 STANDARD DECISION TABLE
TOPSIS for supplier selection
problem.
•Step 4 – STANDARDIZE DECISION
TABLE.
Attributes
DECISION TABLE
Supplier Q1 Q2 Q3 Q4
s
S1 .03 .95 4 4
S2 .05 .98 3.75 4.25
S3 .01 .85 4.75 8.5
√(.03²+.05²+.01² √(.95²+.98²+.85² √(4²+3.75²+4.75² √(4²+4.25²+8.5²
) ) ) )
= 0.059 = 1.608 Attributes= 7.254 = 10.31
Supplier Q1 Q2 Q3 Q4
s
S1 .03/.059 = .508 .95/1.608= .591
S2 .05/.059 = .845
S3 STANDARD DECISION TABLE
TOPSIS for supplier selection
problem.
•Step 4 – STANDARDIZE DECISION
TABLE.
Attributes
DECISION TABLE
Supplier Q1 Q2 Q3 Q4
s
S1 .03 .95 4 4
S2 .05 .98 3.75 4.25
S3 .01 .85 4.75 8.5
√(.03²+.05²+.01² √(.95²+.98²+.85² √(4²+3.75²+4.75² √(4²+4.25²+8.5²
) ) ) )
= 0.059 = 1.608 Attributes= 7.254 = 10.31
Supplier Q1 Q2 Q3 Q4
s
S1 .03/.059 = .508 .95/1.608= .591
S2 .05/.059 = .845 .98/1.608= .609
S3 STANDARD DECISION TABLE
TOPSIS for supplier selection
problem.
•Step 4 – STANDARDIZE DECISION
TABLE.
Attributes
DECISION TABLE
Supplier Q1 Q2 Q3 Q4
s
S1 .03 .95 4 4
S2 .05 .98 3.75 4.25
S3 .01 .85 4.75 8.5
√(.03²+.05²+.01² √(.95²+.98²+.85² √(4²+3.75²+4.75² √(4²+4.25²+8.5²
) ) ) )
= 0.059 = 1.608 Attributes= 7.254 = 10.31
Supplier Q1 Q2 Q3 Q4
s
S1 .03/.059 = .508 .95/1.608= .591 4/7.254= .551 4/10.31= .388
S2 .05/.059 = .845 .98/1.608= .609 3.75/7.254= .517 4.25/10.31=
.412
STANDARD DECISION TABLE
TOPSIS for supplier selection
problem.
•Step 4 – STANDARD DECISION TABLE.
Attributes
Supplier Q1 Q2 Q3 Q4
s
S1 .508 .591 .551 .388
S2 .845 .609 .517 .412
S3 .169 .529 .655 .824
TOPSIS for supplier selection
problem.
•Step 5 – WEIGHTED STANDARD DECISION TABLE.
Multiplying attribute weights as obtained in step-1, with respective
attribute values in standard decision matrix.
Attributes
Supplier Q1 Q2 Q3 Q4
s
S1 .508X.275
S2
S3
ATTRIBUTES
Q1 Q2 Q3 Q4
WEIGHT 0.275 0.230 0.187 0.308
S
Standard decision table as obtained attribute weights as obtained from
from Step-4 Step-1
TOPSIS for supplier selection
problem.
•Step 5 – WEIGHTED STANDARD DECISION TABLE.
Multiplying attribute weights as obtained in step-1, with respective
attribute values in standard decision matrix.
Attributes
Supplier Q1 Q2 Q3 Q4
s
S1 .508X.275
S2 .845X.275
S3
ATTRIBUTES
Q1 Q2 Q3 Q4
WEIGHT 0.275 0.230 0.187 0.308
S
Standard decision table as obtained attribute weights as obtained from
from Step-4 Step-1
TOPSIS for supplier selection
problem.
•Step 5 – WEIGHTED STANDARD DECISION TABLE.
Multiplying attribute weights as obtained in step-1, with respective
attribute values in standard decision matrix.
Attributes
Supplier Q1 Q2 Q3 Q4
s
S1 .508X.275 .591X.230
S2 .845X.275
S3
ATTRIBUTES
Q1 Q2 Q3 Q4
WEIGHT 0.275 0.230 0.187 0.308
S
Standard decision table as obtained attribute weights as obtained from
from Step-4 Step-1
TOPSIS for supplier selection
problem.
•Step 5 – WEIGHTED STANDARD DECISION TABLE.
Multiplying attribute weights as obtained in step-1, with respective
attribute values in standard decision matrix.
Attributes
Supplier Q1 Q2 Q3 Q4
s
S1 .508X.275 .591X.230 .551X.187
S2 .845X.275
S3
ATTRIBUTES
Q1 Q2 Q3 Q4
WEIGHT 0.275 0.230 0.187 0.308
S
Standard decision table as obtained attribute weights as obtained from
from Step-4 Step-1
TOPSIS for supplier selection
problem.
•Step 5 – WEIGHTED STANDARD DECISION TABLE.
Multiplying attribute weights as obtained in step-1, with respective
attribute values in standard decision matrix.
Attributes
Supplier Q1 Q2 Q3 Q4
s
S1 .508X.275 .591X.230 .551X.187 .388X.308
S2 .845X.275 .609X.230 .517X.187 .412X.308
S3 .169X.275 .529X.230 .655X.187 .824X.308
ATTRIBUTES
Q1 Q2 Q3 Q4
WEIGHT 0.275 0.230 0.187 0.308
S
Standard decision table as obtained attribute weights as obtained from
from Step-4 Step-1
TOPSIS for supplier selection
problem.
•Step 5 – WEIGHTED STANDARD DECISION TABLE.
Attributes
Supplier Q1 Q2 Q3 Q4
s
S1 0.14 0.135 0.103 0.119
S2 0.232 0.14 0.097 0.126
S3 0.046 0.121 0.122 0.253
TOPSIS for supplier selection
problem.
•Step 6 – Construct the IDEAL SOLUTION & NEGATIVE IDEAL
SOLUTION.
•IDEAL SOLTION
• Minimum value of Cost Attributes are Ideal.
•Maximum value of Benefit Attributes are Ideal.
S1S*3 = (0.009+0.00+0.0004+0.018)
0.046 0.121 1/2 = 0.166
0.122 0.253
S2* = (0.035+0.00+0.0006_0.016)1/2 = 0.227
TOPSIS for supplier selection
problem.
•Step 7 – Construct the SEPARATION from Ideal solution &
negative ideal solution.
• SEPARATION from Ideal solution Si*
Ideal solution = {0.046, 0.14, 0.122, 0.253}
Cost attribute Benefit attributes
Supplier Q1 Q2 Q3 Q4
s
S1 (0.14 - .046)2 = (0.135 - (0.103 - (0.119 -
0.009 0.14)2 = 0.122)2 = 0.253)2 =
0.000 0.0004 0.018
S2 (0.232 - .046)2 (0.14 - 0.14)2 (0.097 - (0.126 -
= 0.035 = 0.000 0.122)2 = 0.253)2 =
0.0006 0.016
2 2
S1S*3 = (0.009+0.00+0.0004+0.018)
(0.046 - .046) (0.121- 0.14) (0.122 -
1/2 = 0.166 (0.253 -
= 0.000 = 0.00041/2 0.122)2 = 0.253)2 =
S2* = (0.035+0.00+0.0006_0.016) = 0.227
0.000 0.000
S3* = (0.00+0.0004+0.00+0.0000)1/2 = 0.02
TOPSIS for supplier selection
problem.
•Step 7 – Construct the SEPARATION from Ideal solution &
negative ideal solution.
• SEPARATION from Negative ideal solution
Si’ Ideal solution = {0.232, 0.121, 0.097
Negative
0.119} Cost attribute Benefit attributes
Supplier Q1 Q2 Q3 Q4
s
S1 (0.14 - .232)2 = (0.135 - .121)2 (0.103 - .097)2 = (0.119 - .119)2
0.008 = 0.0002 0.0000 = 0.000
S2 (0.232 - .232)2 (0.14 - .121)2 = (0.097 - .097)2 = (0.126 - .119)2
= 0.000 0.0004 0.0000 = 0.0001
S3 (0.046 - .232)2 (0.121 - .121)2 (0.122 - .097)2 = (0.253 - .119)2
= 0.035 = 0.000 0.0006 = 0.0179
S1’ = (0.008+0.0002+0.000+0.000)1/2 = 0.09
S2’ = (0.00+0.0004+0.000+0.0001)1/2 = 0.022
S3’ = (0.035+0.00+0.0006+0.0179)1/2 = 0.231
TOPSIS for supplier selection
problem.
•Step 8 – Calculate the RELATIVE CLOSENESS to Ideal
solution.
• CLOSENESS to ideal solution Ci* = Si’ /(Si* +Si’ )
Criteria S1 S2 S3
Si* 0.166 0.227 0.02
Si’ 0.09 0.022 0.231
Si*+Si’ 0.256 0.249 0.251
0.09/0.256 0.022/0.249 0.231/0.251
Si’ /(Si*+Si’ )
0.351 0.088 0.920
C1* = 0.351
C2* = 0.088 C 3* > C 1* > C 2*
C3* = 0.920
TOPSIS for supplier selection
problem.
•Step 8 – RANK THE ORDER of suppliers based on STEP 8
• C 3* > C 1* > C 2*