Methods · Normalisation
Linear Max Normalization (Linear Division-by-Maximum Normalisation)
This method scales every criterion column by dividing it by its own best value; for a benefit criterion the column's reference point is its largest value, and for a cost criterion its smallest value, so that the best alternative on that criterion always receives exactly 1 point.
Base method's data type: Classical
What Is the Method?
Linear Max Normalization is not, on its own, a decision method. It is a scale-equalisation tool used in the first step of ranking methods such as TOPSIS, SAW and WPM. When the criteria in a decision table are in different units, one in lira, say, another in days and another in points, these values cannot be summed or compared directly. The method produces a unit-free, comparable column by dividing every column by its own best value. Its output is not a score or a rank; it is a normalised table that DecisionMind will weight in the next step. Fishburn defined this form in his 1967 work on additive utility functions; it is one of the oldest normalisation forms used in ranking methods.
The Philosophy Behind It
The question the method asks is simple: what percentage of the best achievable value on this criterion has this alternative reached? The reference point is not the column's average or range but directly the best performance in the column. This is why the best alternative always receives exactly 1 point in every column, and the other alternatives carry a ratio relative to that peak. The method thus settles into a "percentage relative to the best" logic, showing not an alternative's absolute size but where it stands relative to its strongest rival. Its philosophical consequence is this: if the best value in a column is an extreme outlier, all the remaining alternatives look weaker than they are relative to that outlier. The method is internally consistent, but its reference point depends on a single alternative.
How It Works
The method proceeds through two steps.
First, finding the reference value. For a benefit criterion, one where more is better, the column's largest value is found. For a cost criterion, one where less is better, the column's smallest value is found, because for cost the good outcome is a small number.
Second, dividing by direction. For a benefit criterion, every cell is divided by the column's largest value. For a cost criterion the operation reverses: the column's smallest value is divided by every cell. This reverse division ensures that the best alternative also receives 1 point on a cost criterion, but it shrinks large cost values disproportionately. When a small number is divided into a large one, the result shrinks quickly. For instance, if the lowest cost is 28.5 and an alternative's cost is 93.7, that alternative receives 28.5/93.7 = 0.304 points; although the cost differs by less than three times, the score drops to about a third.
Zero and negative values are undefined in this method. If a cost-criterion cell is 0, the smallest value is divided by zero and the result runs to infinity. If a cell is negative, the sign of the division changes, the "divide by the smallest" logic breaks down, and an alternative with a negative cost can meaninglessly receive the highest score. The method is therefore used only with crisp, positive data.
The formulas behind each step are given on the DecisionMind method page; this card carries no formulas.
How to Read the Output
The normalised value shows an alternative's ratio to the column's best on that criterion, and says nothing more. A value of 0.76 does not mean "76 per cent good"; it means "76 per cent of this column's best value." A value of 1 in a column shows that alternative is the best in that column. Values in different columns cannot be compared directly, because each column is scaled separately against its own best value. Thus instead of writing:
"This alternative scored 0.30, so it is a poor alternative"
the report should read:
"This alternative reached 30 per cent of the column's best value on this criterion; it trails the best alternative by roughly three times"
Data Type and Inputs
The method requires crisp data: a single positive number in every cell. DecisionMind carries no separate extension of this building block in fuzzy, grey or intuitionistic data types; each data type uses its own host method's normalisation step, fuzzy TOPSIS's, for instance. You need alternatives in rows, criteria in columns, a number greater than zero in every cell, and direction information for every criterion. The method neither produces nor requires weight; weighting is done in the host method's next step, on the normalised table. A minimum of two alternatives and one criterion is enough; as the number of columns grows only the computation grows, the method's logic does not change.
When to Use It, When Not To
If your data is crisp and positive, and you want a table scaled against each criterion's best value, this method is suitable. It is a common choice in additive methods other than TOPSIS, such as SAW and WPM, because it encodes criterion direction into the table in a single step, avoiding a separate cost/benefit distinction in the next step. It should not be used where the data contains zero or negative values; in that case the cost transformation stays undefined, and min-max normalisation should be used instead. If the best value in a column is a far outlier from the rest, this method makes the remaining alternatives look weaker than they are; in that case, range-based min-max or sum-based linear sum normalisation may be preferable.
Data crisp, positive, a ratio against the best is wanted → Linear Max Normalization
Data contains zero or negative values → Min-Max Normalization
The number of alternatives matters, a share/proportion logic is wanted → Linear Sum Normalization
Values carry a very large scale difference → Logarithmic Normalization
The host method is TOPSIS and its classical form is to be preserved → Vector Normalization
Strengths
The method's greatest strength is its simplicity. It is calculated with a single division, can be verified easily even by hand, and encodes criterion direction into the table in the same step. The best alternative always scoring 1 gives a decision-maker reading the table an intuitive sense of how far a criterion is filled. Its computational load is small and stays just as simple as the number of alternatives and criteria grows.
Weaknesses
Its weakness is that the reference point depends on a single alternative, the column's best. Jahan and Edwards (2015) showed that the choice of normalisation form can seriously affect the ranking result; in methods that divide by the maximum, this effect is especially pronounced when the best value is an outlier. Vafaei, Ribeiro and Camarinha-Matos (2018) showed with numerical examples that different normalisation forms can give the same TOPSIS table a different ranking. The reverse-division operation for a cost criterion is non-linear; large cost differences lead to a disproportionate shrinkage in scores. The method works only with positive data and cannot be used on tables containing zero or negative values.
Common Mistakes
The most frequent mistake is using the benefit formula on a cost criterion too. In that case the most expensive alternative receives 1 point and the ranking is reversed. A second mistake is reading a normalised value such as 0.30 as poor performance; the value shows only a ratio relative to the best, not an absolute measure of failure. A third mistake is continuing to apply the method when the data contains zero or negative values; the result produces an infinite or sign-broken number that can enter a report unnoticed. A fourth mistake is using different normalisation forms in different host methods and then comparing the results; a score produced with TOPSIS's vector normalisation is not on the same scale as one produced with this method.
The governing principle is this:
Linear Max Normalization measures an alternative only against the best rival in its own column; when that best value changes, or is an outlier, the entire table reshapes itself.
Cases
Each case opens with a decision table and shows, in words and figures, how the normalisation form changes the host method's result.
1. Logistics: A courier company's choice of distribution-depot operator (illustrative example, DecisionMind's comparison example)
A courier company will renew a contract with one of three regional distribution-depot operators. There are three criteria: average delivery time, customer satisfaction score, and carrying capacity. Delivery time is "less is better," the other two criteria are "more is better." The company has set its weights so that capacity carries the most, delivery time a moderate amount, and satisfaction the least.
| Operator | Delivery time (hours) | Satisfaction score | Capacity (tonnes) |
|---|---|---|---|
| D1 | 28.5 | 63.9 | 37.1 |
| D2 | 37.6 | 21.7 | 27.4 |
| D3 | 93.7 | 65.2 | 61.3 |
| Direction | lower is better | higher is better | higher is better |
| Weight | 0.30 | 0.20 | 0.50 |
The company will evaluate this table with TOPSIS. If the table is equalised with Linear Max Normalization, the smallest value in the delivery-time column, 28.5, becomes the reference and is divided into every cell; because D3's time is 93.7, it receives 28.5/93.7 = 0.304 points. In the satisfaction and capacity columns the largest value becomes the reference; because D3 is best on capacity, it receives 61.3/61.3 = 1.000 points. Once the table is normalised and weighted this way, the ideal and anti-ideal depot are constructed, the distances are measured, and the closeness score is calculated.
| Operator | Closeness score (Linear Max) | Rank | Closeness score (Vector normalisation) | Rank |
|---|---|---|---|---|
| D3 | 0.595 | 1 | 0.562 | 2 |
| D1 | 0.567 | 2 | 0.578 | 1 |
| D2 | 0.301 | 3 | 0.400 | 3 |
The result reads as follows. With Linear Max Normalization, D3 comes out first; capacity is the heaviest criterion and D3 receives full marks in that column. Although its weakness on delivery time shrinks disproportionately because of the reverse division, the weight on capacity offsets this. When TOPSIS's standard vector normalisation is applied to the same table, D1 moves into first place; vector normalisation does not punish the time gap this harshly, because it does not invert the cost value, instead scaling the raw magnitude and separating direction at the ideal-point step. D2 is last under both methods.
The company hesitates here. The order between D1 and D3 changes solely on which normalisation form is chosen; the inputs and weights have stayed the same. The report should therefore state that the ranking is sensitive to the choice of normalisation and should show both methods' results together.
In the report: "Because of the high weight on capacity, D3 comes out ahead under Linear Max Normalization; when vector normalisation is applied to the same data, D1 moves into first place, because that method punishes the time gap less harshly."
Source: the figures were constructed by this card's author and calculated by running the classical TOPSIS algorithm in Python. This example is DecisionMind's normalisation-comparison example and is not taken from a publication.
2. Textiles: A garment manufacturer's choice of fabric supplier
A garment manufacturer will choose among three fabric suppliers for an annual contract. The criteria are unit fabric price, delivery time, and the quality-control pass rate; price and delivery time are "less is better," the pass rate is "more is better." Before moving to the WPM method, the manufacturer equalised the table with Linear Max Normalization; every column has been expressed as a ratio against its own best supplier.
Suppose one supplier's unit price sits well below the other two, but its delivery time is fairly long. Because the price column's reference is the lowest value, this supplier receives 1.000 points on price. On delivery time, however, its reverse-divided score against the smallest value comes out low, because its time is several times the reference value. Its quality-pass-rate performance is average. The result drops this supplier to second place despite its price advantage; its weakness on delivery time is magnified in the score because of the reverse division.
The manufacturer hesitates here. The delay in delivery time is, in reality, a difference of only a few days, yet the normalised score shows a far larger drop, because the reverse division shrinks large values disproportionately. In the decision meeting, whether this gap is a real effect or an artefact of the normalisation form should be discussed.
In the report: "The reason this supplier stays in second place despite its price advantage is that the delivery-time difference is magnified through Linear Max Normalization's reverse-division step; this sensitivity should be tested by varying the weights before the decision is made."
3. Assessment: An examination centre's choice of optical scanning system
An examination assessment centre will choose among three optical scanning systems for reading exam scripts. The criteria are scripts read per hour, error rate, and maintenance cost; error rate and maintenance cost are "less is better," scripts read per hour is "more is better." Before moving to the SAW method, the centre equalised the table with Linear Max Normalization.
Suppose one system's error rate is far lower than the others, close to zero. In that case the error-rate column's smallest value belongs to this system, and it receives 1.000 points in that column. The other two systems receive low scores by dividing this very small value into their own error rates, because in a reverse division the result shrinks quickly as the divisor shrinks. A small absolute difference in error rate appears as a large gulf in the normalised scores.
The centre hesitates here. The real error difference among the three systems is a matter of a few percentage points, yet in the normalised table this difference appears magnified enough to drop the other two systems to scores close to zero. This is a typical artefact of Linear Max Normalization when the reference point is an extremely small value.
In the report: "The small absolute difference in error rate has been magnified in Linear Max Normalization's reverse-division step; the raw error-rate table should be presented alongside the ranking when it is interpreted."
4. What Not to Do
Had delivery time been marked "more is better" in the same depot table, D3, with the longest time, would have received 1.000 points in that column, making the slowest depot look like the fastest. A second error is reading D3's 1.000 points on capacity as meaning its capacity is flawless; the score only shows that it has the largest capacity among these three depots, not an absolute measure of adequacy. A third error is running the method unchanged if a depot's delivery-time value is entered as 0 hours by a data-entry mistake; once the smallest value is zero, every other cell is divided by zero and the result becomes undefined.
Sources
For the formulas behind each step, the intermediate tables and citation formats, see the DecisionMind method page: decisionmind.app/library/linear-max-normalization
Fishburn, P. C. (1967). Additive Utilities with Incomplete Product Sets: Application to Priorities and Assignments. Operations Research, 15(3), 537–542. DOI: 10.1287/opre.15.3.537
Jahan, A., & Edwards, K. L. (2015). A state-of-the-art survey on the influence of normalization techniques in ranking: Improving the materials selection process in engineering design. Materials & Design, 65, 335–342. DOI: 10.1016/j.matdes.2014.09.022
Vafaei, N., Ribeiro, R. A., & Camarinha-Matos, L. M. (2018). Data normalisation techniques in decision making: case study with TOPSIS method. International Journal of Information and Decision Sciences, 10(1), 19. DOI: 10.1504/ijids.2018.090667
Chakraborty, S., & Yeh, C.-H. (2009). A simulation comparison of normalization procedures for TOPSIS. 2009 International Conference on Computers & Industrial Engineering, 1115–1120. DOI: 10.1109/iccie.2009.5223811