Title: Facility delocation model considering efficiency and equity: banks merger

Authors: Saeed Zarghami; Maghsoud Amiri; Mohammad Taghi Taghavifard; Ahmad Makui

Addresses: Allameh Tabataba'i University, Management and Accounting Faculty, Tehran, Iran ' Allameh Tabataba'i University, Management and Accounting Faculty, Tehran, Iran ' Allameh Tabataba'i University, Management and Accounting Faculty, Tehran, Iran ' Iran University of Science and Technology, Industrial Engineering Faculty, Tehran, Iran

Abstract: Facility delocation emerges due to governance conditions, strategies, technological changes and the new demands in the competition market. Bank merger is no exception in such a condition. In this study, a delocation-merging model is presented for the so-called military banks of Iran. The government has taken into account the issues of efficiency and equity, considering the claims of the stakeholders and based on its own goals. Therefore, a multi-objective model is considered and equality is considered with the help of constraints. Meaning that, when subjected to constraints, equality is introduced into the model using fuzzy logic and also the efficiency score of banks is considered as the importance of facilities using data envelopment analysis method. The constraints of the model determine the number of remaining facilities and numerical examples are analysed, using the epsilon-constraint method augmented in the GAMS software.

Keywords: bank; data envelopment analysis; delocation; epsilon-constraint; fuzzy logic; efficiency and equity; multi-objective model.

DOI: 10.1504/IJADS.2024.138194

International Journal of Applied Decision Sciences, 2024 Vol.17 No.3, pp.361 - 387

Received: 09 Jul 2022
Accepted: 24 Jan 2023
Published online: 30 Apr 2024 *

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