price (mil. Kč) duration (months) economic result (mil.

Kč) subsuppliers (%)

firm A 20 26 2 10
firm B 24 30 6 30
firm C 18 28 4 25
min min max min
weights 0.4 0.3 0.1 0.2

ideal 18 26 6 10
the worst 24 30 2 30

Rank method we use only rank of each alternative under each criterion.
price (mil. Kč) duration (months) economic result (mil. Kč) subsuppliers (%)
firm A 2 1 3 1
firm B 3 3 1 3
firm C 1 2 2 2

Point method - the town council set the point's rank of each alternative according to each criterion.
price (mil. Kč) duration (months) economic result (mil. Kč) subsuppliers (%)
firm A 7 10 8 10
firm B 2 6 10 2
firm C 9 9 9 5

AWM method - the normalization supposed linear function of utility

price (mil. Kč) duration (months) economic result (mil. Kč) subsuppliers (%)
firm A 0.6666666666667 1 0 1
firm B 0 0 1 0
firm C 1 0.5 0.5 0.25
 Town council anounced tendr for building of
new sewer system. There are four announced
sum of weights criterions of optimalizations - the price of the
1 tender, the duration of the work, the economic
result in the last year of the offering firm and
the amount of subsuppliers.
Town council obtained three offers from three
different firms, see the table.

The town manager discussed with the town

weighted rank conclusion council and then he set the weights for
1.6 1 individual criterions.
2.8 3
1.6 1

ach criterion.
weighted sum of points conclusion
8.6 1
4 3
8.2 2

weighted sum conclusion

0.766666666666667 1
0.1 3
0.65 2
V
 C1 C2 C3 C4
firm A 20 26 2 10
firm B 24 30 6 30
firm C 18 28 4 25
min min max min
weights 0.4 0.3 0.1 0.2

ideal 18 26 6 10
the worst 24 30 2 30

All criterions to maximaze - it is a condition of TOPSIS method. So, the minimizing criterions had to be converted.
C1 C2 C3 C4
firm A 4 4 2 20
firm B 0 0 6 0
firm C 6 2 4 5

norma 7.211103 4.472136 7.483315 20.61553

Normed matrix
C1 C2 C3 C4
firm A 0.5547 0.894427 0.267261 0.970143
firm B 0 0 0.801784 0
firm C 0.83205 0.447214 0.534522 0.242536

Weighted normed matrix

C1 C2 C3 C4 di+ di- ci
firm A 0.22188 0.268328 0.026726 0.194029 0.123145585242976 0.398595 0.763972
firm B 0 0 0.080178 0 0.469485132451242 0.053452 0.102215
firm C 0.33282 0.134164 0.053452 0.048507 0.199726704029584 0.363093 0.645132
ideal 0.33282 0.268328 0.080178 0.194029
the worst 0 0 0.026726 0

from ideal
C1 C2 C3 C4
firm A 0.11094 0 0.053452 0
firm B 0.33282 0.268328 0 0.194029
firm C 0 0.134164 0.026726 0.145521
from the worst
C1 C2 C3 C4
firm A 0.22188 0.268328 0 0.194029
firm B 0 0 0.053452 0
firm C 0.33282 0.134164 0.026726 0.048507
had to be converted.

result - rank
1
3
2