Bicriterion programs and managerial location decisions: Application to the banking sector

In the design of a new urban retail network, the size of each office can be determined-once the number and the location of outlets have been fixed-by means of a location-allocation model. In order to carry out this task, two different solutions have been considered: the best solution in the opinion of the firm’s managers and the solution obtained by maximizing the outlets’ accessibility, based on a spatial interaction model. The biobjective program presented here bridges the gap between both solutions by enabling the generation of a finite set of non-inferior points, and constitutes, therefore, a valuable decisoin-support tool. The paper closes with a case study in the banking sector.