Methods · Ranking
ARAS (Additive Ratio Assessment)
ARAS measures each alternative by the ratio of benefit it delivers relative to a hypothetical "best" alternative derived from the same table, converting that ratio into a directly interpretable percentage degree of utility.
Base method's data type: Classical
What Is the Method?
ARAS is a ranking method for when you hold a decision table and want the alternatives placed in a single order. Its output is a utility degree (K) for every alternative, together with the rank that degree produces. Zavadskas and Turskis proposed it in 2010. Unlike TOPSIS, ARAS does not build two hypothetical points, an ideal and an anti-ideal; it builds only a single hypothetical "optimal alternative" and computes every real alternative's ratio against this one reference. It does not generate weights, it takes them from outside. It is applied in fields such as civil engineering, energy investment and supplier selection.
The Philosophy Behind It
The idea behind ARAS is to answer the question "how good is this alternative" directly, in proportional terms. First a hypothetical "optimal alternative" is built: one that carries the best value on every criterion but does not actually exist. The question then becomes: what percentage of the optimal alternative's benefit does a real alternative deliver? ARAS answers this by computing the same weighted total score for both the real alternatives and the optimal alternative, then dividing each real alternative's score by the optimal alternative's score. The resulting ratio (K) can be read directly as "percentage of benefit relative to the optimal alternative." K=0.86 means that this alternative delivers roughly 86 per cent of the benefit the optimal alternative would provide.
This construction carries a philosophical consequence. Like SAW, ARAS rests on a fully compensatory additive structure. A weakness on one criterion is readily offset by strength on another, because every criterion's contribution dissolves into a single weighted total. Its difference from TOPSIS is that the reference point is not "two separate distances to an ideal and an anti-ideal," but "a direct ratio to a single optimal alternative." This makes ARAS's result simpler than TOPSIS's closeness score, but conceptually narrower too; ARAS offers only a one-way comparison.
How It Works
The method proceeds through five steps.
First, the optimal alternative is built. A hypothetical "optimal alternative" row, carrying the best value that real alternatives achieve on each criterion, is added to the decision table. This row holds the largest value for a "higher is better" criterion and the smallest for a "lower is better" one.
Second, the scale is equalised. Cost-direction ("lower is better") criteria are inverted first, so that a larger value corresponds to a better outcome, suited to multiplication rather than division. Every column is then divided by its own total, scaling it to between 0 and 1 so that each column sums to 1. This is applied to every row, including the optimal-alternative row.
Third, weighting is applied. Every equalised value is multiplied by its criterion's weight.
Fourth, the optimality function is computed. For every row, the real alternatives and the optimal alternative alike, the weighted values are summed. This total is that row's "optimality" score.
Fifth, the utility degree and the rank are found. Every real alternative's optimality score is divided by the optimal alternative's optimality score. This ratio is the utility degree (K); K lies between 0 and 1 and shows the percentage benefit relative to the optimal alternative. Alternatives are ranked by this degree from the highest to the lowest.
The formulas behind each step, the intermediate tables and the citation formats are given on the DecisionMind method page; this card carries no formulas.
How to Read the Output
The utility degree K is a value between 0 and 1 and can be read directly as "what percentage of benefit, relative to the hypothetical optimal alternative." K=0.86 means the alternative delivers roughly 86 per cent of the benefit the optimal alternative would provide. But this reading holds only within this particular analysis. The optimal alternative is derived from this alternative set; if the set changes, that is, an alternative is added or removed, the optimal alternative changes too and the K values must be recomputed. A K close to 1 does not mean "perfect," it means "very close to this alternative set's own optimal alternative." K cannot be compared with the result of a different analysis, such as TOPSIS's closeness score or PROMETHEE's net flow.
Thus instead of writing:
"According to ARAS, A2 is the best alternative"
the report should read:
"Relative to the optimal alternative derived from this alternative set, A2 holds the highest utility degree (K=0.86); this ratio is meaningful only for this alternative set and these weights, and it is sensitive to a change in weights"
Data Type and Inputs
ARAS works with crisp data: one number per cell, a positive value different from zero, which is required so that cost criteria can be inverted. You need: alternatives in rows, criteria in columns, a positive number in every cell, direction information for every criterion, and weights summing to 1. It does not produce weights, it requires them; they can be taken from sources such as AHP, BWM, CRITIC or Entropy. DecisionMind carries sixteen ARAS family members alongside the base method. A minimum of two alternatives and two criteria is required; three to twelve criteria work comfortably.
When to Use It, When Not To
ARAS is a suitable choice if your criteria can be measured numerically, your table is complete, and you accept that a weakness on one criterion may be met by strength on another. It also suits situations where you want to present the result directly, in the plain language of "what percentage of benefit relative to the optimum." Its typical territory includes construction and infrastructure investment choice, power-plant and technology comparison, and supplier evaluation.
There are situations where it should not be used. If you will not compromise on one criterion, ARAS is not suitable, because it is fully compensatory and offers no elimination logic. In a setting where the alternative set changes frequently, K values should not be expected to stay comparable over time; every new set shifts the optimal alternative and requires recomputation. Where a strong dependency exists between criteria, ARAS is likewise unsuitable, because it treats criteria as independent.
A numerical table, compensation accepted, the result is to be presented as a simple ratio → ARAS
Distance relative to two reference points (an ideal and an anti-ideal) is wanted → TOPSIS
No compromise on one criterion, sub-threshold alternatives must be screened out → screening first, then ranking
Not a ranking but weights are needed → AHP, BWM, SWARA (subjective); Entropy, CRITIC (objective)
Strengths
ARAS's greatest strength is its simple, directly interpretable output. The utility degree K corresponds directly to a percentage ratio, which makes the result easy to explain to non-technical decision-makers. Second, its computational burden is light. Rather than TOPSIS's two reference points or PROMETHEE's pairwise comparisons, the method takes a ratio against a single optimal alternative. Third, the method rests on a direct principle of proportionality: the relationship between an alternative's performance and its utility degree is proportional, which makes the method mathematically traceable (Zavadskas and Turskis, 2010). Fourth, its core is flexible enough to be extended to types of uncertainty such as grey numbers (Turskis and Zavadskas, 2010).
Weaknesses
Its limitations stem from the same structure. First, the optimal alternative is derived from the alternative set. Adding or removing an alternative from the set can change the optimal alternative, and therefore every K value; this is another form of the rank-reversal problem seen in TOPSIS. Second, correctly deriving the optimal alternative for cost criteria, taking the smallest value, is critical; deriving it incorrectly distorts every K value in the same direction. Third, the fully compensatory structure allows a serious weakness on one criterion to be papered over by another. Fourth, the method treats criteria as independent; where criteria influence one another, weight is implicitly counted twice. Fifth, the quality of the weights lies outside the method itself; a flawless calculation built on poor weights still produces a poor ranking (Zavadskas and Turskis, 2011).
Common Mistakes
The most common mistake is building the optimal alternative for a cost criterion from the largest value by mistake. This inflates the optimal alternative's score, shrinks every K value in the same direction, and can even distort the ranking. A second mistake is reading the K value as "percentage probability of being the best"; K is only a proportional measure of benefit relative to this alternative set's optimal alternative. A third is adding an alternative once the analysis is finished and being surprised that the optimal alternative, and therefore every K value, changes. The alternative set must be fixed before the analysis begins. A fourth mistake is marking criterion direction wrongly: if a "lower is better" criterion is marked "higher is better," both the optimal alternative and the normalisation run in reverse. A fifth is assigning equal weights without justification.
The governing principle is this:
The utility degree depends on the optimal alternative derived from the alternative set and on the weights supplied; if the alternative set or the weights change, K changes too, and the report must show this clearly.
Cases
Each case opens with a decision table, describes in words what the method does to it, and shows how to read the result. The first case is an illustrative validation example; the rest are illustrative constructions.
1. Energy: Choosing among three power-plant investments (illustrative example)
An energy company will choose one of three renewable power-plant investments. Three criteria apply: installed capacity, regional social-acceptance score, and investment cost. Capacity and social acceptance are "higher is better," cost is "lower is better." The company has given capacity the highest weight (0.40), social acceptance a middling weight (0.35), and cost the lowest (0.25).
| Plant | Installed capacity | Social acceptance | Investment cost |
|---|---|---|---|
| S1 | 3 | 5 | 4 |
| S2 | 5 | 3 | 2 |
| S3 | 4 | 4 | 3 |
| Direction | higher is better | higher is better | lower is better |
| Weight | 0.40 | 0.35 | 0.25 |
The method first builds a hypothetical "optimal plant" row carrying the best value on every criterion (highest capacity, highest social acceptance, lowest cost); it inverts cost, scales every column relative to its own total, multiplies by the weights, and computes the total optimality score for every row, the three real plants and the optimal plant alike. Finally, each real plant's score is divided by the optimal plant's score.
| Plant | Utility degree (K) | Rank |
|---|---|---|
| S2 | 0.863 | 1 |
| S3 | 0.765 | 2 |
| S1 | 0.711 | 3 |
The result reads as follows. S2 has the lowest score on social acceptance, yet it finishes first. This is because it is the best on capacity, the heaviest criterion, and also has the lowest cost; it is strong on two heavy criteria at once. S3 is not the best on any single criterion, but finishes second with a balanced profile. S1 finishes third because it has the lowest value on capacity; being the best on social acceptance is not enough to offset this, because the weight on capacity exceeds that on social acceptance.
The company hesitates: would the result change if the weights shifted towards social acceptance? When the weights are redistributed to 0.20 for capacity, 0.60 for social acceptance and 0.20 for cost, and the same algorithm is run independently in Python, the utility degrees come out at 0.815 for S1, 0.772 for S3 and 0.764 for S2. The ranking reverses completely: S2 falls from first place to last. This shows that the difference between the three plants is highly sensitive to how much weight is placed on which criterion; the company must defend in the report why it settled on this particular weight distribution.
In the report: "With the weights given, S2 holds the highest utility degree relative to the optimal plant (K=0.863); once the weights shift towards social acceptance (capacity 0.20, social acceptance 0.60, cost 0.20), the ranking reverses completely and S2 falls to last place, so the weight distribution should be separately approved by the board."
Source: This case is DecisionMind's ARAS-engine validation example; the matrix and weights (recorded in the manifest as A1/A2/A3 and C1/C2/C3 rather than S1/S2/S3) were constructed as a small example that can be checked by hand, not taken from a table in Zavadskas and Turskis's (2010) paper; it is an illustrative example. The figures for the weight-change scenario were independently recomputed with the same algorithm by this card's author.
2. Engineering: A construction company's choice of bridge foundation type
A construction company will choose one of three foundation types for a planned bridge project. Three criteria apply: bearing capacity, construction time, and cost. Bearing capacity is "higher is better"; construction time and cost are "lower is better." The company has given bearing capacity the highest weight.
The method compares the three foundation types: it builds the optimal, that is, the hypothetical best, foundation type and computes each alternative's ratio against it. Suppose the foundation type with the highest bearing capacity also has the longest construction time and the highest cost. It still finishes first on utility degree, because the weight on bearing capacity exceeds the combined weight of the other two criteria. The foundation type that is fastest to build and cheapest finishes second.
The company hesitates: if the geotechnical survey is later revised and the bearing-capacity requirement changes, the weights could change too and the ranking could reverse; this shows that the final decision should not be made before site conditions are settled. The K value, moreover, represents the impact of a long construction time on the project schedule only through a small weight; the company should evaluate this risk separately.
In the report: "With the highest weight given to bearing capacity, the foundation type with the highest capacity comes out clearly ahead; if the geotechnical survey is revised and the weights change, the ranking needs to be recomputed."
3. Business: A retail chain's choice of new branch location
A retail chain will choose a location for a new branch among three candidate sites. Four criteria apply: estimated daily footfall, rental cost, competitor density (the number of competing stores in the same area), and transport-accessibility score. Footfall and accessibility are "higher is better"; rental cost and competitor density are "lower is better." The chain has given footfall the highest weight.
The method compares the three locations. Suppose the location with the highest footfall also has the highest rental cost and the densest competitor environment. It still finishes first on utility degree. The location with the lowest rent finishes second, because its footfall is lower.
The chain hesitates: the K value represents the risk that market share will erode over time in a high-competitor-density area only through a small weight. The chain should not move to a final decision without raising this weight and recomputing. The period and method used to estimate footfall, and hence how reliable it is, should also be stated in the report.
In the report: "With the highest weight given to footfall, the location with the highest footfall comes out clearly ahead; because the weight on competitor density is kept low, this risk's share is limited, and the ranking could change if that weight is raised."
4. What Not to Do
Had investment cost been marked "higher is better" by mistake in the same plant table, the optimal plant would have been built from the most expensive alternative. In that case, S2's advantage of having the lowest cost would reverse, and the result would become meaningless because of the direction error. A second error is adding a fourth plant once the analysis is finished and being surprised that the optimal plant, and therefore every K value, changes; the alternative set must be fixed before the analysis. A third error is reporting S2's utility degree of 0.863 as "an 86 per cent probability of being the right choice"; K only shows these three plants' proportional benefit relative to the optimal plant, it is not a probability.
Extensions: for different data types
ARAS has 15 extensions in the library. Same decision logic, different data type: if your data is not a classical number, read the relevant data type card, then open that member.
Sources
For the formulas behind each step, the intermediate tables and citation formats, see the DecisionMind method page: decisionmind.app/library/aras
Zavadskas, E. K., & Turskis, Z. (2010). A new additive ratio assessment (ARAS) method in multicriteria decision-making. Technological and Economic Development of Economy, 16(2), 159-172. DOI: 10.3846/tede.2010.10
Zavadskas, E. K., Turskis, Z., & Vilutienė, T. (2010). Multiple criteria analysis of foundation instalment alternatives by applying Additive Ratio Assessment (ARAS) method. Archives of Civil and Mechanical Engineering, 10(3), 123-141. DOI: 10.1016/S1644-9665(12)60141-1
Turskis, Z., & Zavadskas, E. K. (2010). A novel method for multiple criteria analysis: Grey Additive Ratio Assessment (ARAS-G) method. Informatica, 21(4), 597-610. DOI: 10.15388/informatica.2010.307
Zavadskas, E. K., & Turskis, Z. (2011). Multiple criteria decision making (MCDM) methods in economics: an overview. Technological and Economic Development of Economy, 17(2), 397-427. DOI: 10.3846/20294913.2011.593291