In multi-criteria decision making (MCDM) problems, ratings are assigned to the alternatives on different criteria by the expert group. In this paper, we propose a thermodynamically consistent model for MCDM using the analogies for thermodynamical indicators - energy, exergy and entropy. The most commonly used method for analysing MCDM problem is Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). The conventional TOPSIS method uses a measure similar to that of energy for the ranking of alternatives. We demonstrate that the ranking of the alternatives is more meaningful if we use exergy in place of energy. The use of exergy is superior due to the inclusion of a factor accounting for the quality of the ratings by the expert group. The unevenness in the ratings by the experts is measured by entropy. The procedure for the calculation of the thermodynamical indicators is explained in both crisp and fuzzy environment. Finally, two case studies are carried out to demonstrate effectiveness of the proposed model.
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