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As the logistics and complexity of check processing grow, some strategic questions must be addressed: 1. How many and which encoding sites should serve the branch network? 2. Which branches should each encoding site serve? 3. What resources and costs should be considered in evaluating alternatives? In 1984, a project was initiated to examine the check-processing operations at BancOhio National Bank. CHECKSIM, a check-processing simulation model, was used to show the entire check-processing flow from receipt through the completion of check-processing operations. The routing algorithm and check-processing simulator were run for each encoding site for each day of the typical week. Results indicated that significant cost advantages could be obtained by consolidating operations. In addition, the consolidation project uncovered large potential benefits to be derived from ancillary support functions.