Selecting Service Facility Location of Automatic Teller Machine (ATM): A Case Study

Abstract

The growth of Automated Teller Machine networks is essential for promoting financial services, particularly in developing urban areas like Baghdad, Iraq. Nevertheless, operations managers at smaller private banks often struggle with identifying the best locations for ATMs due to their limited access to sophisticated analytical tools and technical know-how. This study applies the Analytical Hierarchy Process to operations managers in making better-informed choices about facility site selection. The research highlights a practical situation concerning a small private bank that wants to set up an ATM in one of three suggested locations. Through discussions with bank leaders, four main criteria were identified: security, competition, foot traffic, and installation costs. AHP was used to carry out pairwise comparisons of both the criteria and the possible locations, allowing the bank to turn qualitative assessments into measurable data and rank its options. The research establishes that AHP offers a clear, replicable, and effective method for making multi-criteria location decisions in the service sector.  This research provides a useful instrument for strategic decision  planning in the banking industry. The model is adaptable to different scenarios and can be adjusted according to the service facility capabilities, making it particularly beneficial for small to medium-sized banks facilities looking to enhance ATM location. In conclusion, the study emphasizes the significance of AHP as a tool that improves service delivery, customer satisfaction, and the competitiveness of  service facilities.