A Decision Support Model for Bank Branch Location Selection
Location selection is one of the most important
decision making process which requires to consider several criteria
based on the mission and the strategy. This study-s object is to
provide a decision support model in order to help the bank selecting
the most appropriate location for a bank-s branch considering a case
study in Turkey. The object of the bank is to select the most
appropriate city for opening a branch among six alternatives in the
South-Eastern of Turkey. The model in this study was consisted of
five main criteria which are Demographic, Socio-Economic, Sectoral
Employment, Banking and Trade Potential and twenty one subcriteria
which represent the bank-s mission and strategy. Because of
the multi-criteria structure of the problem and the fuzziness in the
comparisons of the criteria, fuzzy AHP is used and for the ranking of
the alternatives, TOPSIS method is used.
[1] Ayağ, Z., & Özdemir, R.G. , "A fuzzy AHP approach to valuating
machine tool alternatives," Journal of Intelligent Manufacturing ,17,
179-190, 2006.
[2] Benitez, J.M., Martin., J.C., & Roman, C.(2007). "Using fuzzy
number for measuring quality of service in the otel industry". Tourism
Management, 28(2), 544-555, 2007.
[3] Boufounou, P.V., "Evaluating bank branch location and performance :
A case study," European Journal of Operational Research, 87, 389-
402,1995.
[4] Bozda─ƒ, C.E., Kahraman, C., & Ruan , D. (2003)." Fuzzy group
decision making for selection among computer integrated
manufacturing systems. Computer in Industry, 51, 13-29
[5] Buckley, J.J., "Fuzzy hierarchical analysis", Fuzzy Sets and Systems,
17(3), 233-247,1985.
[6] Buckley, J.J., t.Feuring and Y.Hayashi "Fuzzy hierarchical analysis
revisited, " European Journal of Operational Research, 129, 48-64,
2001.
[7] Buyukozkan,,G., C.Kahraman and D.Ruan, " A fuzzy multi-criteria
decision approach for software development strategy selection",
International Journal of General Systems 33 (2-3), 259-280, 2004.
[8] Chan, F. T. S., & Kumar, N. (2007). "Global supplier development
considering ris factors using fuzzy extended AHP-based approach.
Omega International Journal of Management Science, 35.
[9] Chang, D.Y., "Applications of the extent analysis method on fuzzy
AHP", European Journal of Operational Research, 95, 649-655, 1996
Operations Management, Sixth Edition, USA
[10] Heizer, J. And B.Render; Production and Prentice-Hall, 2001.
[11] Hwang, C.L., & Yoon, K. (1981). Multiple attributes decision making
methods and applications: Berlin: Springer.
[12] Iannou, G. A. Karakerezis and M.Mavri, "Branch network and modular
service optimization for community banking", International
Transactions in Operational Research, 9, 531-547, 2002.
[13] Kahraman, C., U.Cebeci and D.Ruan," Multi attribute comparison of
catering service companies using fuzzy AHP; The case of Turkey,"
International Journal of Production Economics, 87(2), 171-184, 2004.
[14] Kahraman, C., T. Ertay ang G. Buyukozkan," A fuzzy optimization
model for QFD planning process using analytic network approach",
European Journal of Operational Research, 171, 390-411, 2006.
[15] Laarhoven, P.J.M and W. Pedrcyz, "A fuzzy extension of Saaty-s
priority theory,", Fuzzy Sets and Systems 11 (3), 229-241, 1983.
[16] Leung, L., & Cao, D. (2000). On consistency and ranking alternatives in
fuzzy AHP. European Journal of Operational Research, 124,102-113
[17] Liu, F.H. and Hai,L.H., "The voting analytic hierarchy process method
for selecting supplier", International Journal of Production Economics,
97, 308-317, 2005.
[18] Miliotis,, P. M . Dimopoulou and I.Giannikos " Ahierarchical location
model for locating bank branches in a competitive environment,",
International Transactions in Operrational Research, 9-5, 549-565, 2002.
[19] Min, H., " A model based decsision support system for locating banks",
Information and Management, 17-4, 207-215, 1989.
[20] Ravallion, M. And Q.Wodon ,"Banking on the poor? Branch location
and nonfarm rural development in Bangladesh," Review of
Development Economics , 4(2), 121-139, 2000.
[21] Saaty, T. L., The Analytic Hierarchy Process, New York: Mc Graw-Hill,
1980.
[22] Stevenson WJ (1993) Production/ Operations Management, 4thEdition,
Richard D.Irwin.,Homewood.
[23] Tolga E, Demircan M, Kahraman C ," Operating system selection using
fuzzy replacement analysis and analytic hierarchy process",
International Journal of Production Economics, 97:89-117.
[24] Wang, Y.M., & Elhag, T.M.S (2006). Fuzzy TOPSIS method based on
alpha level sets with an application to bridge risk assssment.Expert
Systems with Applications, 31, 309-319.
[25] Zhao, L.,B.Garner and B.Parolin , "Branch bank closures in Sydney : A
geographical perspective and analysis,"12th International Conference on
Geoformatics, Sweden, 2004.
[1] Ayağ, Z., & Özdemir, R.G. , "A fuzzy AHP approach to valuating
machine tool alternatives," Journal of Intelligent Manufacturing ,17,
179-190, 2006.
[2] Benitez, J.M., Martin., J.C., & Roman, C.(2007). "Using fuzzy
number for measuring quality of service in the otel industry". Tourism
Management, 28(2), 544-555, 2007.
[3] Boufounou, P.V., "Evaluating bank branch location and performance :
A case study," European Journal of Operational Research, 87, 389-
402,1995.
[4] Bozda─ƒ, C.E., Kahraman, C., & Ruan , D. (2003)." Fuzzy group
decision making for selection among computer integrated
manufacturing systems. Computer in Industry, 51, 13-29
[5] Buckley, J.J., "Fuzzy hierarchical analysis", Fuzzy Sets and Systems,
17(3), 233-247,1985.
[6] Buckley, J.J., t.Feuring and Y.Hayashi "Fuzzy hierarchical analysis
revisited, " European Journal of Operational Research, 129, 48-64,
2001.
[7] Buyukozkan,,G., C.Kahraman and D.Ruan, " A fuzzy multi-criteria
decision approach for software development strategy selection",
International Journal of General Systems 33 (2-3), 259-280, 2004.
[8] Chan, F. T. S., & Kumar, N. (2007). "Global supplier development
considering ris factors using fuzzy extended AHP-based approach.
Omega International Journal of Management Science, 35.
[9] Chang, D.Y., "Applications of the extent analysis method on fuzzy
AHP", European Journal of Operational Research, 95, 649-655, 1996
Operations Management, Sixth Edition, USA
[10] Heizer, J. And B.Render; Production and Prentice-Hall, 2001.
[11] Hwang, C.L., & Yoon, K. (1981). Multiple attributes decision making
methods and applications: Berlin: Springer.
[12] Iannou, G. A. Karakerezis and M.Mavri, "Branch network and modular
service optimization for community banking", International
Transactions in Operational Research, 9, 531-547, 2002.
[13] Kahraman, C., U.Cebeci and D.Ruan," Multi attribute comparison of
catering service companies using fuzzy AHP; The case of Turkey,"
International Journal of Production Economics, 87(2), 171-184, 2004.
[14] Kahraman, C., T. Ertay ang G. Buyukozkan," A fuzzy optimization
model for QFD planning process using analytic network approach",
European Journal of Operational Research, 171, 390-411, 2006.
[15] Laarhoven, P.J.M and W. Pedrcyz, "A fuzzy extension of Saaty-s
priority theory,", Fuzzy Sets and Systems 11 (3), 229-241, 1983.
[16] Leung, L., & Cao, D. (2000). On consistency and ranking alternatives in
fuzzy AHP. European Journal of Operational Research, 124,102-113
[17] Liu, F.H. and Hai,L.H., "The voting analytic hierarchy process method
for selecting supplier", International Journal of Production Economics,
97, 308-317, 2005.
[18] Miliotis,, P. M . Dimopoulou and I.Giannikos " Ahierarchical location
model for locating bank branches in a competitive environment,",
International Transactions in Operrational Research, 9-5, 549-565, 2002.
[19] Min, H., " A model based decsision support system for locating banks",
Information and Management, 17-4, 207-215, 1989.
[20] Ravallion, M. And Q.Wodon ,"Banking on the poor? Branch location
and nonfarm rural development in Bangladesh," Review of
Development Economics , 4(2), 121-139, 2000.
[21] Saaty, T. L., The Analytic Hierarchy Process, New York: Mc Graw-Hill,
1980.
[22] Stevenson WJ (1993) Production/ Operations Management, 4thEdition,
Richard D.Irwin.,Homewood.
[23] Tolga E, Demircan M, Kahraman C ," Operating system selection using
fuzzy replacement analysis and analytic hierarchy process",
International Journal of Production Economics, 97:89-117.
[24] Wang, Y.M., & Elhag, T.M.S (2006). Fuzzy TOPSIS method based on
alpha level sets with an application to bridge risk assssment.Expert
Systems with Applications, 31, 309-319.
[25] Zhao, L.,B.Garner and B.Parolin , "Branch bank closures in Sydney : A
geographical perspective and analysis,"12th International Conference on
Geoformatics, Sweden, 2004.
@article{"International Journal of Engineering, Mathematical and Physical Sciences:59334", author = "Nihan Cinar", title = "A Decision Support Model for Bank Branch Location Selection", abstract = "Location selection is one of the most important
decision making process which requires to consider several criteria
based on the mission and the strategy. This study-s object is to
provide a decision support model in order to help the bank selecting
the most appropriate location for a bank-s branch considering a case
study in Turkey. The object of the bank is to select the most
appropriate city for opening a branch among six alternatives in the
South-Eastern of Turkey. The model in this study was consisted of
five main criteria which are Demographic, Socio-Economic, Sectoral
Employment, Banking and Trade Potential and twenty one subcriteria
which represent the bank-s mission and strategy. Because of
the multi-criteria structure of the problem and the fuzziness in the
comparisons of the criteria, fuzzy AHP is used and for the ranking of
the alternatives, TOPSIS method is used.", keywords = "MCDM, bank branch location, fuzzy AHP, TOPSIS.", volume = "3", number = "12", pages = "1102-6", }
