A novel spatial decision support methodology to practically restructure branches network under uncertainty

Document Type : Research Paper

Authors

School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Abstract

The proper location of facilities /service providers is of paramount importance in the business success of several economy sectors for the sake of its effects on the service demand and hence on the market share. A vital problem resulted from modernization, urbanization, and globalization is the reconfiguration of branch locations and service capabilities to match the fast-changing and competitive market, regional economy, and customer distribution. This work introduces a new spatial decision support methodology to restructure branches' network with proposing a mathematical model taken from a real national project in the financial market. It considers establishing the new branches, relocating the current branches, merging the redundant branches, or ones with poor performance into the other branches. Moreover, a credibility-based fuzzy chance-constrained programming model is proposed to consider uncertainty in travel distances and market attractiveness of each node. The data and results are processed using the geographical information system (GIS) for Bank Melli in an urban district of Tehran.

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