Strategic Planning for Bank Operations with Multiple Check-Processing Locations

Partially due to the relaxation of branch banking restraints, US banks are increasing their branch networks. The wider geographical dispersion of bank branches can complicate the check-processing function resulting in the need to determine (1) How many operations centers should be used and where should they be located? (2) Which branches should be served by each center? and (3) What resources should be taken into consideration in evaluating the alternatives? BancOhio National Bank has recently analyzed these issues through the application of CHECKSIM, a check-processing simulation model, and reduced annual direct operating costs by over $1.6 million by relocating their processing facilities.