Using Weighted Maximal Covering Model with Partial Coverage and Geographical Information Systems for Locating Bank Branches

Mohaghar, Ali; Aryaee, Sara; Heidary, Jalil; Toomanian, Ara

doi:10.22054/jims.2017.8114

Document Type : Research Paper

Authors

https://doi.org/10.22054/jims.2017.8114

Abstract

Nowadays banks, credit and financial institutions are trying to increase profits, reduce costs, compete with rivals, attract customers and increase productivity. One of the factors that contributes to the implementation of these strategies is the optimum locations of branches. Locating the new branches of Mehr Eghtesad bank in the region 1 in Tehran city is the aim of this research. Since the focus of service centers such as banks is on maximal or full service to customers, among the all the covering models, Maximal Covering Location model is chosen as the best option to locate the new bank branches. To this end, related literature about locating bank branches, Geographical Information system (GIS) and maximal covering location problem (MCLP) examined. Then, through library Studies and interviewing with managers and experts, the researcher chose effective criteria and sub criteria for locating bank branches. The weights of criteria and sub criteria were determined through filling the questionnaires by managers. GIS used to extract some input data for the model and weighted maximal covering model (MCLM) with partial covering used to choose the best locations. Mathematical programming model formulated with 363 binary variables, 122 constraints, 121 demand areas, 121 potential points, the 1000 m buffer, α = 0.75, b = 50%, θ = 2 and s= 8 & 30 branches (with two different scenarios) and solved with GAMS optimization software. It is clear that by solving the first scenario, eight suitable locations and second scenario thirty suitable locations to open new branches will be generated.

Keywords

20.1001.1.22518029.1396.15.47.1.2

References

بامداد، ن.، و رفیعی مهرآبادی، ن. (1387)، بررسی رضایت مشتریان از کیفیت خدمات خودپرداز بانک ها، پژوهشنامه علوم انسانی و اجتماعی مدیریت، شماره 31 ،39-58، تهران.

عشورنژاد، غ.، فرجی سبکبار، ح.، سید علوی پناه، ک. و نامی، م. (1391). مکان یابی شعب جدید بانک ها و موسسات مالی و اعتباری با استفاده از فرآیند تحلیل شبکه ای فازی (Fuzzy ANP). مجله پژوهش و برنامه ریزی شهری، دوره 2، شماره 7، صص 1-20.

فرجی سبکبار، ح.، سید علوی پناه، ک.، نامی، م. و عشورنژاد، غ. (1392). ارزیابی مکان استقرار شعب بانک ها و مؤسسه های مالی و اعتباری منطقه ی شش شهر تهران با استفاده از روش دیماتیل و فرآیند تحلیل شبکه ای، پژوهش های جغرافیای انسانی، دوره 45 ، شماره 3 ، صص. 77-94.

فرهادی گوگه، ر. (1379)، تجزیه و تحلیل توزیع مکانی و مکان‌یابی مدارس با استفاده GIS؛ مطالعه موردی: مدارس ابتدایی منطقه 6 تهران، پایان نامه کارشناسی ارشد، دانشگاه تربیت مدرس.

گودرزی، آ.، و زبیدی، ح. (1387). بررسی تاثیر گسترش بانکداری الکترونیکی بر سودآوری بانک های تجاری ایران، فصلنامه پژوهش های اقتصادی ایران، دوره 10، شماره 35، صص 139-111.

Aldajani, M. A., & Alfares, H. K. (2009). Location of banking automatic teller machines based on convolution. Computers & Industrial Engineering, 57(4), 1194-1201.

Alexandris, G., & Giannikos, I. (2010). A new model for maximal coverage exploiting GIS capabilities. European Journal of Operational Research, 202(2), 328-338.

Başar, A., Çatay, B., & Ünlüyurt, T. (2011). A multi-period double coverage approach for locating the emergency medical service stations in Istanbul. Journal of the Operational Research Society, 62(4), 627-637.

Beraldi, P., & Bruni, M. E. (2009). A probabilistic model applied to emergency service vehicle location. European Journal of Operational Research, 196(1), 323-331.

Berman, O., Drezner, Z., & Krass, D. (2010). Generalized coverage: New developments in covering location models. Computers & Operations Research, 37(10), 1675-1687.

Cebi, F., & Zeren, Z. (2008, July). A decision support model for location selection: Bank branch case. In Management of Engineering & Technology, 2008. PICMET 2008. Portland International Conference on (pp. 1069-1074). IEEE.

Farahani, R. Z., Asgari, N., Heidari, N., Hosseininia, M., & Goh, M. (2012). Covering problems in facility location: A review. Computers & Industrial Engineering, 62(1), 368-407.

Fu, Y. (2007). Managing Customer Services Using GIS in Banks: A Case in Chinese Competitive Environment.

Geroliminis, N., Karlaftis, M. G., & Skabardonis, A. (2009). A spatial queuing model for the emergency vehicle districting and location problem. Transportation Research Part B: Methodological, 43(7), 798-811.

Hakimi, S. L. (1965). Optimum distribution of switching centers in a communication network and some related graph theoretic problems. Operations Research, 13(3), 462-475.

MacDonald, E. H. (2001). GIS in banking: Evaluation of Canadian bank mergers. Canadian Journal of Regional Science, 24(3), 419.

Miliotis, P., Dimopoulou, M., & Giannikos, I. (2002). A hierarchical location model for locating bank branches in a competitive environment. International transactions in operational research, 9(5), 549-565.

Morrison, P. S., & O’Brien, R. (2001). Bank branch closures in New Zealand: the application of a spatial interaction model. Applied Geography, 21(4), 301-330.

Mottaghi, H. (2006). Production and operations management, Avaye Patrice Publications.

Panigrahi P.K., Sagar P.V. and Raajesh P.R. (2003), GIS tools for simplifying the collection management system in banks and financial service organization, Map Asia.

Schmid, V., & Doerner, K. F. (2010). Ambulance location and relocation problems with time-dependent travel times. European journal of operational research, 207(3), 1293-1303.

Snyder, L. V. (2011). Covering problems. In Foundations of Location Analysis, 109-135, Springer US.

TitiDezh O. & PirMoradi A. (2005). Tutorial ArcGIS 9.x and basic concepts of GIS. Shomal University Publications.

Wacker, J. G. (1998). A definition of theory: research guidelines for different theory-building research methods in operations management. Journal of operations management, 16(4), 361-385.

Wagner, M. R., Bhadury, J., & Peng, S. (2009). Risk management in uncapacitated facility location models with random demands. Computers & Operations Research, 36(4), 1002-1011.

Xia, L., Yin, W., Dong, J., Wu, T., Xie, M., & Zhao, Y. (2010). A hybrid nested partitions algorithm for banking facility location problems. Automation Science and Engineering, IEEE Transactions on, 7(3), 654-658.

Zhao, L. (2002). The integration of Geographical information systems and multicriteria decision making models for the analysis of branch bank closures. University of New South Wales.

Industrial Management Studies

Using Weighted Maximal Covering Model with Partial Coverage and Geographical Information Systems for Locating Bank Branches

References

References

Volume 15, Issue 47
January 2017
Pages 1-22

Using Weighted Maximal Covering Model with Partial Coverage and Geographical Information Systems for Locating Bank Branches

References

References

Volume 15, Issue 47January 2017Pages 1-22

Volume 15, Issue 47
January 2017
Pages 1-22