A TOPSIS Based Design of Experiment Approach to Assess Company Ranking

Abstract

Company ranking is a complex process in which multiple financial ratios are required to be considered simultaneously. Furthermore, the selection process of an appropriate credit applicant company has become more complex as the experts in the financial organizations have to assess a wide range of alternatives based on a set of conflicting financial criteria. This paper studies the application of a new approach, i.e., Design of Experiment and TOPSIS method (DoE-TOPSIS) together to make company raking as frequently encountered in the real-time financial environment. The developed model is tested by case studies and satisfactory results are obtained. In the case studies, the results obtained by using the combined DoE-TOPSIS method are almost corroborated by those derived from conventional multi attribute decision making (MADM) methods which prove the applicability, potentiality, simplicity and flexibility of this method in making company ranking. (C) 2013 Elsevier Inc. All rights reserved.