Authors: Houxing Tang; Fang Fang
Addresses: School of Business Administration, Nanchang Institute of Technology, Nanchang 330099, China ' School of Accounting, Jiangxi University of Finance and Economics, Nanchang 330013, China
Abstract: Some papers present a simple and intuitive method for eliminating rank reversal in TOPSIS by replacing the relative ideal solution with the absolute ideal solution. Unfortunately, this method has some defects, because it creates new constraints on the initial data. Consequently, it will still result in rank reversal. However, these new constraints are neglected in the present studies. In this paper, the efficacy coefficient method is introduced to deal with these problems. Firstly, the merits and drawbacks of the absolute ideal solution are presented. Secondly, the efficacy coefficient method is used to restructure the initial data in order to eliminate these new constraints. Thirdly, it is proved that selecting a different preference weight coefficient in the efficacy coefficient method does not affect the relative rank, and can increase the discrimination degree of alternatives. Finally, based on an illustrative example, the results show that the novel improved method is valid and stable.
Keywords: TOPSIS; rank reversal; efficacy coefficient method; ECM; novel improvement; multi-criteria decision-making.
International Journal of Internet Manufacturing and Services, 2018 Vol.5 No.1, pp.67 - 84
Received: 01 Apr 2017
Accepted: 21 Oct 2017
Published online: 19 Mar 2018 *