Abstract
Logistics has emerged as a crucial component in various business domains, playing a significant role in ensuring efficient operations. In addition to traditional applications, logistics principles are also being applied in the financial sector, specifically in the management of Automated Teller Machines (ATMs). ATMs offer a self-service and time-independent mechanism, providing financial institutions with an efficient means of serving their customers. However, the network design of cash distribution poses several challenges that necessitate an optimized solution. This solution aims to fulfill customer demands for ATMs while simultaneously minimizing losses for banks. This paper proposes a combined approach to address these challenges, integrating the demand forecasting with the vehicle routing problem. The replenishment policy begins with forecasting cash withdrawals, utilizing various methods such as statistical methodologies (e.g., ARIMA and SARIMA) and machine learning techniques (e.g., Prophet and DNN). To determine optimal routes for armored trucks and minimize costs based on the forecasted data, the VRP Spreadsheet Solver tool is implemented. By developing a decision support system, several methods are applied to facilitate ATM visitation using inventory control methodologies and vehicle routing techniques. This integrated approach seeks to achieve a balance between meeting ATM customer demands and optimizing the utilization of resources in cash replenishment and distribution. Overall, this research presents a comprehensive solution for addressing the challenges in cash network design for ATMs. By combining forecasting methods with vehicle routing optimization, it offers a decision support system that enhances the efficiency of ATM operations while minimizing costs and ensuring customer satisfaction.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Ekinci, Y., Serban, N., Duman, E.: Optimal ATM replenishment policies under demand uncertainty. Oper. Res. Int. J. 21(2), 999–1029 (2019). https://doi.org/10.1007/s12351-019-00466-4
Ekinci, Y., Lu, J.C., Duman, E.: Optimization of ATM cash replenishment with group-demand forecasts. Expert Syst. Appl. 42(7), 3480–3490 (2015)
Cedolin, M., Erol Genevois, M.: District Performance of the ATMs by alternative DEA techniques. In: 2019 3rd International Conference on Data Science and Business Analytics (ICDSBA) (pp. 61–64). IEEE (2019)
Talarico, L., Sorensen, K., Springael, J.: Metaheuristics for the risk constrained cash-in-transit vehicle routing problem. Eur. J. Oper. Res. 244(2), 457–470 (2015)
Gubar, E., Zubareva, M., Merzljakova, J.: Cash flow optimization in ATM network model. Contrib. Game Theory Manage. 4, 213–222 (2011)
Xu, G., Li, Y., Szeto, W.Y., Li, J.: A cash transportation vehicle routing problem with combinations of different cash denominations. Int. Trans. Oper. Res. 26(6), 2179–2198 (2019)
Cedolin, M., Erol Genevois, M.: An averaging approach to individual time series employing econometric models: a case study on NN5 ATM transactions data. Kybernetes 51(9), 2673–2694 (2022)
Khanarsa, P., Sinapiromsaran, K.: Multiple ARIMA subsequences aggregate time series model to forecast cash in ATM. In: 2017 9th International Conference on Knowledge and Smart Technology (KST) (pp. 83–88). IEEE (2017)
Simutis, R., Dilijonas, D., Bastina, L.: Cash demand forecasting for ATM using neural networks and support vector regression algorithms. In: 20th International Conference, Euro Mini Conference Continuous Optimization and Knowledge-Based Technologies, 416–421 (2008)
Simutis, R., Dilijonas, D., Bastina, L., Friman, J.: A flexible neural network for ATM cash demand forecasting. Cimmacs ‘07: WSEAS International Conference on Computational Intelligence, Man-Machine Systems and Cybernetics, 163–168 (2007)
Asad, M., Rafi M.: A long-short-term-memory based model for predicting ATM replenishment amount. In: 21st International Arab Conference on Information Technology (ACIT) (2020)
Poorzaker Arabani, S., Ebrahimpour Komleh, H.: The improvement of forecasting ATMS cash demand of Iran banking network using convolutional neural network. Arab. J. Sci. Eng. 44(4), 3733–3743 (2019)
Bolduc, M.-C., Laporte, G., Renaud, J., Boctor, F.F.: A tabu search heuristic for the split delivery vehicle routing problem with production and demand calendars. Eur. J. Oper. Res. 202(1), 122–130 (2010)
Anbuudayasankar, S.P., Ganesh, K., Koh, S.C.L., Ducq, Y.: Modified savings heuristics and genetic algorithm for bi-objective vehicle routing problem with forced backhauls. Expert Syst. Appl. 39(3), 2296–2305 (2012)
Van Anholt, R.G., Coelho, L.C., Laporte, G., Vis, I.F.: An inventory-routing problem with pickups and deliveries arising in the replenishment of automated teller machines. Transp. Sci. 50(3), 1077–1091 (2016)
Bae, H., Moon, I.: Multi-depot vehicle routing problem with time windows considering delivery and installation vehicles, pp. 6536–6549 (2016)
Taylor, S.J., Letham, B.: Prophet: forecasting at scale, pp. 37–45 (2017)
Erdoğan, G.: An open source spreadsheet solver for vehicle routing problems. Comput. Oper. Res. 84, 62–72 (2017)
Nahmias, S.: Production and Operation Analysis (6th ed.). Mc Graw Hill. (2013)
Acknowledgment
The authors acknowledge that this research was financially supported by Galatasaray University Research Fund (Project Number: FOA-2022–1128).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Orhan, D., Erol Genevois, M. (2023). Cash Replenishment and Vehicle Routing Improvement for Automated Teller Machines. In: Kahraman, C., Sari, I.U., Oztaysi, B., Cebi, S., Cevik Onar, S., Tolga, A.Ç. (eds) Intelligent and Fuzzy Systems. INFUS 2023. Lecture Notes in Networks and Systems, vol 758. Springer, Cham. https://doi.org/10.1007/978-3-031-39774-5_80
Download citation
DOI: https://doi.org/10.1007/978-3-031-39774-5_80
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-39773-8
Online ISBN: 978-3-031-39774-5
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)