A model-based decision support system for locating banks

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 location decision support system for branch-banks. To demonstrate the practicality of the proposed model-based DSS, it has been applied to establish real-world-like location scenarios for commercial branch-banks in Columbus, Ohio.