In this project, we focused on an assignment problem. We would like to offer a mathematical model for ATM assignment problem. Here we minimize the cost of relocation of ATMs by considering walking time to ATMs, population density, and common areas. For details, please contact us.

1. AGU IE 213
PROJECT FINAL
PRESENTATION
By
Aladdin Demirkan
Serkan Kıdır
Burhan Özyılmaz
Şengül Timuray
27.12.2017 11

2. ● Problem Definition
● Objective
● Literature Review
● Methodology
● Proposed Model
● Results
● Conclusion
2

3. Problem Definition
● Facility location problems
● Aim: To find optimal places of each unit while decreasing the cost
● Banking sector > ATMs
● It provides more and easier services
● It is important to locate ATMs
● Specialists of different banks, they have problem
● Cameras or heavy people traffic daily
● There is no model
● Maximum covering problem type
3

4. Objective
● Multi objective mathematical model
● In 50 neighborhoods in Kocasinan/Kayseri
● Maximum covering problem, (Ruiz-Hernandez, 2014)
● 2 objectives
- Maximize covering area
- Minimize the relocation cost
4

5. Literature Review
● Alfred Weber (1909)
● Hakimi (1964)
● Brandeau and Chiu (1989)
● Wang (2003)
● Hernandez (2014)
5
➔ Accessibility
➔ Redundancy
➔ Capture
★ Set Covering Location Problems
★ Maximum Covering Location Problems
★ P-Median Location Problems

6. Methodology
6

7. Proposed
Model
● Kocasinan
● 50 Neighborhoods
● 13 ATMs
7

8. 8

9. 60 Possible Locations
9

10. 510 Districts
300x300 m Squares
10

11. i
i
5x5 District Range
6x6 District Range
11

12. 373 374 375 376 377 … 510
1 0 0 0 0 0 …
2 0 0 0 0 0 …
3 0 0 0 0 0 …
4 0 0 0 0 0 …
5 0 0 0 0 0 …
6 0 0 0 1 1 …
7 1 1 1 1 1 …
8 0 1 1 1 0 …
9 0 0 0 0 0 …
10 0 0 0 0 0 …
.
.
.
60
… … … … … …
K(i,j) Binary Parameter Table
12

13. 13

14. 14

15. 15

16. Other Parameters
● W(j) importance of the district j
● Y(i) importance of the location i
● P(i) current places of the ATMs
● FC fixed cost for relocation
● X(i) takes a value of 1 if there is
an ATM allocated to possible
location i and 0, otherwise
● F(i) represents free variable C+
● E(i) represents free variable C-
Decision Variables
16

17. Our Objectives
17

18. Subject to
18

19. 19

20. Current Situation
20

21. 6 ATMs held their places
(5 were not relocatable)
7 ATMs were relocated
21

22. Conclusion:
● A solution for maximum covering
problem.
● Useful for state banks in Turkey.
22

23. Conclusion:
23

24. 24
Mistakes
● Focusing on model too much
● Defining the problem late
● Not try to get any help

25. Future Work
● Importance of
districts
● The number of
people on the
street
● Competitors’ ATMs
● The density of
customers
● Agreements
25

26. References
[1] Weber, A. (1909). Theory of Location of Industries. Retrieved December, 2017, from
http://www.economia.unam.mx/cedrus/descargas/Libro%20de%20Weber.pdf
[2] Hakimi, S. (1964, June). Optimum Locations of Switching Centers and the Absolute Centers and
Medians of a Graph. Retrieved December, 2017, from https://dl.acm.org/citation.cfm?id=2772642
[3] Brandeau, M., & Chiu, S. (1989). An Overview of Representative Problems in Location Research.
Retrieved December, 2017, from
http://www.scirp.org/(S(oyulxb452alnt1aej1nfow45))/reference/ReferencesPapers.aspx?ReferenceID=117
4004
[4] Ruiz-Hernández, D. (2014), Capacitated Delocation Models for Closing and Resizing Redundant
Branches, CUNEF (Colegio Universitario de Estudios Financieros), retrieved from:
http://biblioteca.cunef.edu/gestion/catalogo/doc_num.php?explnum_id=1398
26

27. 27
Thank You!
Aladdin Demirkan Serkan Kıdır Burhan Özyılmaz Şengül Timuray
27