A Heuristic Solution to ATM Location Optimization
In this study, bank ATM/branch location problem is undertaken to maximize the total profit of the full network of
existing and to be added facilities. In general, ATM/branch location decisions are made intuitively according to expert
opinion and historic data. Here, we develop a mathematical model with the objective of maximizing the overall performance
of the ATM network of a bank. In our modeling, we take into account the fact that nearby ATMs can affect each other’s
performance negatively, and we establish a three phase solution framework that helps the planners to determine the best
locations for a number of ATMs to be added to the existing network.
Keywords- Facility Location Problem, Competitive Facilities, Decomposition, Heuristics