A Modified TOPSIS Method utilizing the Gray Correlation Analysis

Abstract

The Original TOPSIS (Technique for Order Preference by Similarity to an Ideal Solution) Method is a ranking method based on the principle that the chosen alternative should be as close to the ideal solution, rather than the negative-ideal solution, as possible. However, currently utilizing in establishing the evaluation system of indicator-based model, the Original TOPSIS Method is failed to take the weights of indices into account. Besides, other weighting method like Subjective Evaluation Method is proved to be largely influenced by various subjective situations. To resolve the problem of weighting, in this paper, we propose a new method named Modified TOPSIS Method utilizing Gray Correlation Analysis. By eliminating the mistakes caused by indices which are essentially measured by the same factors, it is useful to improve the evaluation system of indicator-based model. The verification utilizing Spearman's Rank Correlation Coefficient demonstrates that our Modified TOPSIS Method is improved.