An Integrated Approach for ATM Location Strategy Using Analytic Network Process and Weighted Goal Programming

Authors: Derya Celik Turkoglu, Michele Cedolin, Mujde Erol Genevois

Abstract: Automatic Teller Machines (ATMs) are still one of the most important channels to enhance market penetration for banks and location selection decision has a substantial effect on long-term profitability and sustainability. Therefore, nowadays ATM location problem is a popular topic in ATM management. This paper proposes a new practical methodology, which combines Analytic Network Process (ANP) and Goal Programming (GP) model for a real case study. We apply this methodology to the actual data of a Turkish bank to demonstrate the applicability and validity of the model. The model simultaneously determines the total number of required ATMs and locations of ATMs to meet the customers’ demand. We illustrate behaviour of the model under different scenarios to provide useful insights into the decision process. The results of the model are found satisfactory; furthermore, trade-off ability as well as simplicity of the model is appreciated by the bank management.

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 15, 2018, Art. #23

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Derya Celik Turkoglu, Michele Cedolin, Mujde Erol Genevois, "An Integrated Approach for ATM Location Strategy Using Analytic Network Process and Weighted Goal Programming," WSEAS Transactions on Business and Economics, vol. 15, pp. 236-248, 2018
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