Research Reports from the Department of Operations

Document Type

Report

Publication Date

1-1-1983

Abstract

This paper presents a strategic planning model designed to help commercial banks and financial institutions optimize their retail outlet networks, including full-service branches and ATMs. The model incorporates market share equations based on the distribution of retail outlets across geographical areas, referred to as markets, and integrates these equations into a mathematical optimization framework. The primary objective is to maximize overall retail profit by determining the optimal number of branches and ATMs to open or close during a defined planning horizon. Budget constraints and other optional features influence the model's structure, providing flexibility in variable selection and constraint application. This framework supports decision-making for retail network expansion or contraction, tailored to the bank’s strategic goals and financial constraints. [Likely published circa 1983.]

Keywords

Operations research, Banks and banking--Planning, Strategic planning--Mathematical models, Market share--Mathematical models

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 527

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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