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A Decision Support Methodology for Locating Bank Branches: A Case Study in Turkey

Author

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  • Ayfer Basar

    (Industrial Engineering Department, Istanbul Technical University, Macka Campus 34357, Istanbul, Turkey)

  • Özgür Kabak

    (Industrial Engineering Department, Istanbul Technical University, Macka Campus 34357, Istanbul, Turkey)

  • Y. Ilker Topcu

    (Industrial Engineering Department, Istanbul Technical University, Macka Campus 34357, Istanbul, Turkey)

Abstract

This paper presents an integrated decision support methodology for locating bank branches. The methodology is composed of two stages: problem structuring, and modeling. In the first stage, initially, a number of criteria are selected with the help of a detailed literature review and expert opinions. Subsequently, importance weights of these criteria for different types of bank branches are identified based on judgments of experts for pairwise comparison questions. At the modeling stage, considering the characteristics and importance of the criteria, a novel multi-objective mathematical programming model is proposed to find specific locations of bank branches. The proposed methodology is applied in locating branches of a Turkish bank. In order to test the validity of the results and robustness, a sensitivity analysis is conducted and the solutions are found to be robust.

Suggested Citation

  • Ayfer Basar & Özgür Kabak & Y. Ilker Topcu, 2017. "A Decision Support Methodology for Locating Bank Branches: A Case Study in Turkey," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 59-86, January.
    • Handle: RePEc:wsi:ijitdm:v:16:y:2017:i:01:n:s0219622016500462
    DOI: 10.1142/S0219622016500462
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    2. Paulo Cesar Schotten & Danielle Costa Morais, 2019. "A group decision model for credit granting in the financial market," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-19, December.

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