Track: Business Management
Abstract
As entities merge, operations consolidation by reducing the number of operating facilities, minimizing the staffing levels and reengineering flow between supply and customers’ demands are of utmost importance for mergers success. In this paper, branch restructuring of two Saudi-based banks after their mergers will be discussed. The bank branch restructuring will be optimized by minimize the operating cost, satisfying customer demand (number of transactions) and discarding extra supply by closing some branches. Set covering and transportation models will be used in assigning each branch to a customer node area, ensuring it satisfies their demand. Final results suggest a 3% decrease in operating costs.