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Application of Multi-Objective Optimization on the Basis of Ratio Analysis (MOORA) Method for Bank Branch Location Selection

Author

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  • Ali Gorener
  • Hasan Dinçer
  • Umit Hacioglu

Abstract

Location selection problem in banking is an important issue for the commercial success in competitive environment. There is a strategic fit between the location selection decision and overall performance of a new branch. Providing physical service in requested location as well as alternative distribution channels to meet profitable client needs is the current problematic to achieve the competitive advantage over the rivalry in financial system. In this paper, an integrated model has been developed to support in the decision of branch location selection for a new bank branch. Analytic Hierarchy Process (AHP) technique has been conductedto prioritize of evaluation criteria, and multi-objective optimization on the basis of ratio analysis (MOORA) method has been applied to rank location alternatives of bank branch.

Suggested Citation

  • Ali Gorener & Hasan Dinçer & Umit Hacioglu, 2013. "Application of Multi-Objective Optimization on the Basis of Ratio Analysis (MOORA) Method for Bank Branch Location Selection," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 2(2), pages 41-52, April.
    • Handle: RePEc:rbs:ijfbss:v:2:y:2013:i:2:id:430
    DOI: 10.20525/ijfbs.v2i2.145
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    References listed on IDEAS

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