Analytic Network Process approach for automatic teller machines deployment problem

Abstract

Deciding facility location is a hard and sophisticated problem for decision makers as there are many criteria some of which are conflicting and subjective. Determining the location of an automatic teller machine (ATM) for deployment is also a challenging decision for banks which has not been addressed adequately in the literature up to now. Where to locate the automatic teller machines is a strategic and long-term decision therefore making the right decision is important for the banks. In this paper, both qualitative and quantitative criteria that should be considered are defined for ATM deployment problem. The criteria are categorized into main clusters in accordance with their similar characteristics and the interdependencies between them are explained. Analytic Network Process (ANP) methodology is preferred to evaluate the importance levels of these criteria. This study intends to build up a generic framework that can be used afterwards to determine the best locations for off-site ATMs of a bank which cover all customer demand and keep costs at a minimum level in ATM deployment problem. The study also covers the banks which have ATMs or do not have any ATMs and searching for the best locations in order to deploy new ATMs.