Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30172
A Decision Support Model for Bank Branch Location Selection

Authors: Nihan Cinar


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.

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4423


[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.