Pareto improvement and joint cash management optimisation for banks and cash-in-transit firms

Ágoston, Kolos Csaba; Benedek, Gábor; Gilányi, Zsolt

doi:10.1016/j.ejor.2016.04.045

Cited by 13 publications

(3 citation statements)

References 25 publications

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“…In Automatic Teller Machine (ATM) servicing, researchers have explored several paths to predict the supply of cash availability in these machines and optimize operations [11][12][13][14][15][16][17][18][19].…”

Section: Methodsmentioning

confidence: 99%

The Case for RFID-Enabled Traceability in Cash Movements

Decker

Zoghi

2023

FinTech

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Cash movements between banks and customers are often conducted through armored courier services. These armored couriers are hesitant to adopt new technologies because the business’s nature requires well-documented custody transfers of cash bags. Often, these transfers are still based on paper receipts. The researchers believe that using radio frequency identification (RFID) and an application programming interface (API) between all parties in the cash management ecosystem reduces cost, improves efficiency, and increases capacity. To alleviate the hesitancy of armored couriers, a simulation model is made that operates much like an existing 45-vehicle branch. Once the model was validated, changes were made to the model to adopt the API interfaces and RFID systems required. In addition, an RFID-based sorting robot was implemented. A comparison focused on the workforce utilization of armored vehicle crews and branch tellers. As expected, the resulting model significantly reduces staffing requirements, improves efficiency, and increases capacity. The operational behaviors of tellers were reduced by 79%, and truck route durations were reduced by 43%. The expectation is that this research will help armored couriers see the advantages of adopting such a system and spur additional investigation of the solution. Finally, the cost of the system and operational savings were put into a return on investment/payback period calculation, revealing an annual savings of approximately USD 2.2 million after a one-year payback period.

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Section: Methodsmentioning

confidence: 99%

The Case for RFID-Enabled Traceability in Cash Movements

Decker

Zoghi

2023

FinTech

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“…Ekinci, Lu, & Duman (2015) integrated the results of their forecasts with a cash replenishment optimization model to determine the amount of cash and trucking logistics schedules necessary for replenishing cash in all of the ATMs. Agoston, Benedek, & Gilanyi (2016) defined the cash management problem as a single problem by incorporating the cash optimization problem of the bank into the cash optimization problem of the CIT firms. To reduce the overall cash management costs, including transportation costs and interest costs, the researchers defined a joint optimization model using contractual prices between banks and the CIT firms.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Regarding real-world scenarios, the literature is notably limited. Although there are certain models, such as (Ekinci, Lu, & Duman, 2015), (Agoston, Benedek, & Gilanyi, 2016), (Lazaro, Jimenez, & Takeda, 2018) and (Osorio & Toro, 2012), that test the applicability of the model on a real network of an existing bank with the historical data, they do not present the actual results of the application of the models. For example, Lazaro, Jimenez, & Takeda (2018) used four years of branch level historical data from a national bank on a daily basis.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimization of Atm and Branch Cash Operations Using an Integrated Cash Requirement Forecasting and Cash Optimization Model

Bilir

2018

bmij

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In this study, an integrated cash requirement forecasting and cash inventory optimization model is implemented in both the branch and automated teller machine (ATM) networks of a mid-sized bank in Turkey to optimize the bank’s cash supply chain. The implemented model’s objective is to minimize the idle cash levels at both branches and ATMs without decreasing the customer service level (CSL) by providing the correct amount of cash at the correct location and time. To the best of our knowledge, the model is the first integrated model in the literature to be applied to both ATMs and branches simultaneously. The results demonstrated that the integrated model dramatically decreased the idle cash levels at both branches and ATMs without degrading the availability of cash and hence customer satisfaction. An in-depth analysis of the results also indicated that the results were more remarkable for branches. The results also demonstrated that the utilization of various seasonal indices plays a very critical role in the forecasting of cash requirements for a bank. Another unique feature of the study is that the model is the first to include the recycling feature of ATMs. The results demonstrated that as a result of the inclusion of the deliberate seasonal indices in the forecasting model, the integrated cash optimization models can be used to estimate the cash requirements of recycling ATMs.

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Evolutionary Computing Applied to Solve Some Operational Issues in Banks

Krishna

Ravi

2018

Management and Industrial Engineering

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Pareto improvement and joint cash management optimisation for banks and cash-in-transit firms

Cited by 13 publications

References 25 publications

The Case for RFID-Enabled Traceability in Cash Movements

The Case for RFID-Enabled Traceability in Cash Movements

Optimization of Atm and Branch Cash Operations Using an Integrated Cash Requirement Forecasting and Cash Optimization Model

Evolutionary Computing Applied to Solve Some Operational Issues in Banks

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