Selecting the appropriate bank location using rank order centroid (ROC)‎

Abstract EN

The objective of this study is to identify the appropriate location for a bank in Hadhramout, The Republic of Yemen.five zones were selected as candidate locations in Hudhramout .

The five zones are Al-mukalla, Al-sharj, Al-ddees, Fowah, and Khalef.

The final selected location was decided based on seven criteria.

These,were identified by several representatives from the bussiness men and the local councils.The criteria are market growth, closeness to the markets, closeness to the services, labor, labor climate, suppliers, and environmental factors,.

The importance of these seven criteria is respective weight of each criterion in determining the final location were calculated using Rank Order Centroid (ROC).

In applying ROC, a suggestion was made on how to tackle the problem of assigning weights to criteria having the same priority level, which was not clarified or available in the standard ROC.

This technique revealed that suppliers was the most important factor while closeness to the markets was regarded to be the least important factor in deciding the final location for the bank.

The study revealed that Al-mukalla was the best location.

The result of this study, if implemented, would hopefully help the Yemeni government in their effort to improve the process of decision – making as well as the management of the bank in the region of Hadhramout.

To strengthen the finding and the technique, we proposed that other technique such as AHP, and fuzzy AHP to be applied.