TOPSIS-RAD: Ranking According to Desires

Abstract

Traditional TOPSIS derives its reference points -- the Positive Ideal Solution ($PIS$) and Negative Ideal Solution ($NIS$) -- from the observed alternative set, making rankings susceptible to misalignment with decision-maker (DM) requirements, sensitivity to outlier performances, and rank reversal. This paper proposes TOPSIS-RAD, which addresses these issues by incorporating two arrays of DM-defined reference levels. Vetoed Performance Levels ($VPL$) exclude non-viable alternatives before normalisation, preventing them from distorting the ranking frontiers. Desired Performance Levels ($DPL$) cap performances at the DM's desired level before normalisation, anchoring the $PIS$ in explicit aspirations rather than dataset extremes. Three toy examples demonstrate each mechanism: $VPL$ reshapes normalisation boundaries by removing a non-viable alternative; fixed $DPL$ frontiers stabilise rankings by limiting the influence of performances well above the desired level. The method preserves the familiar distance-based structure of TOPSIS while grounding the ranking in stable, DM-specified boundaries. Limitations and future research directions are also discussed.