A model-based decision support system for locating banks

✍ Scribed by Hokey Min

• Publisher: Elsevier Science
• Year: 1989
• Tongue: English
• Weight: 866 KB
• Volume: 17
• Category: Article
• ISSN: 0378-7206
• DOI: 10.1016/0378-7206(89)90044-x

✦ Synopsis

The proper location of branch-banks is critical to the success of the banking business. The major ingredients for deciding where to locate branch-banks are: growth rates of deposits and loans; degree of competition; easy accessibility, and operating costs of potential sites. These are often highly sensitive to socio-economic. demographic, and behavioral factors that are ill-defined and fuzzy in nature. Accordingly, the traditional normative approach alone cannot analyze the excessive location-related data associated with the external factors and cannot appropriately evaluate behavioral criteria for branch-bank sites. In order to overcome these difficulties, this paper develops an interactive fuzzy goal programming model embedded within a locational decision support system for branch-banks. To demonstrate the practicality of the proposed model-based DSS, it has been applied to establish real-woridlike location scenarios for commercial branch-banks in Columbus. Ohio.