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Extension of TOPSIS Method and its Application in Investment

  • Research Article - Computer Engineering and Computer Science
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Abstract

Technique for order preference by similarity to an ideal solution (TOPSIS) is an effective technique to solve multi-criteria decision-making problem. It aims to select the alternative, which has the “shortest distance” from positive ideal solution (PIS) and the “farthest distance” from negative ideal solution (NIS). Nevertheless, much literature has demonstrated that the solution calculated by TOPSIS only is the compromise of PIS and NIS, and it is of great restriction in dealing with the practical problems which have diverse demands and properties. Therefore, in the presented model, an optimism coefficient is defined to expand the physical meaning of the standard TOPSIS. Decision-makers (DMs) can describe their attitudes toward risk and profit by changing the value of optimism coefficient. Furthermore, intuitionistic fuzzy number is introduced to measure the evaluations (linguistic values) of DMs to alternatives under diverse criteria. Intuitionistic fuzzy weighted averaging operator is used for fusing the judgments of all DMs. Finally, a conclusion can be safely obtained that the proposed model is stable and validity from the illustrative examples and sensitivity analysis.

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Acknowledgements

The work was partially supported by National Natural Science Foundation of China (Grant No. 61671384), Natural Science Basic Research Plan in Shaanxi Province of China (Program No. 2016JM6018), Aviation Science Foundation (Program No. 20165553036), the Fund of Shanghai Aerospace Science and Technology SAST(Program No. SAST2016083), the Seed Foundation of Innovation and Creation for Graduate Students in Northwestern Polytechnical University (Program No. Z2017142).

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  1. School of Automation, Northwestern Polytechnical University, Xi’an, 710072, Shaanxi, China

    Yubo Huang

  2. School of Electronics and Information, Northwestern Polytechnical University, Xi’an, 710072, Shaanxi, China

    Wen Jiang

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  1. Yubo Huang
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Correspondence to Wen Jiang.

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Huang, Y., Jiang, W. Extension of TOPSIS Method and its Application in Investment. Arab J Sci Eng 43, 693–705 (2018). https://doi.org/10.1007/s13369-017-2736-3

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