Dynamic Programming Solution to ATM Cash Replenishment Optimization Problem

Date

2018-10-05

Author

Karagöz, Pınar
Toroslu, İsmail Hakkı

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

491
views

0
downloads

Automated Telling Machine (ATM) replenishment is a wellknown problem in banking industry. Banks aim to improve customer satisfaction by reducing the number of out-of-cash ATMs and duration of out-of-cash status. On the other hand, they want to reduce the cost of cash replenishment, also. The problem conventionally has two components: forecasting ATM cash withdrawals, and then cash replenishment optimization on the basis of the forecast. In this work, for the first component, it is assumed that reliable forecasts are already obtained for the amount of cash needed in ATMs. We focus on the ATM cash replenishment component, and propose a dynamic programming based solution. Experiments conducted on real data reveal that the solutions of the baseline approaches have high cost, and the proposed algorithm can find optimized solutions under the given forecasts.

Subject Keywords

Automated Telling Machine (ATM), Cash replenishment optimization

URI

https://hdl.handle.net/11511/34378

DOI

https://doi.org/10.1007/978-3-030-00979-3_45

Collections

Department of Computer Engineering, Conference / Seminar

Suggestions

OpenMETU
Core

Comparison of integer linear programming and dynamic programming approaches for ATM cash replenishment optimization problem Özer, FaziIle; Toroslu, İsmail Hakkı; Department of Computer Engineering (2019) In Automated Telling Machine (ATM) cash replenishment problem, banks aim to re-duce the number of out-of-cash ATMs and duration of out-of-cash status. On theother hand, they want to reduce the cost of cash replenishment, as well. The problemconventionally involves forecasting ATM cash withdrawals, and then cash replenish-ment optimization on the basis of the forecast. We assume that reliable forecasts arealready obtained for the amount of cash needed in ATMs. The focus of the thesisis cash replenishment opt...
Comparison of Integer Linear Programming and Dynamic Programming Approaches for ATM Cash Replenishment Optimization Problem Ozer, Fazilet; Toroslu, İsmail Hakkı; Karagöz, Pınar (2020-07-01) With the automated teller machine (ATM) cash replenishment problem, banks aim to reduce the number of out-of-cash ATMs and duration of out-of-cash status. On the other hand, they want to reduce the cost of cash replenishment, as well. The problem conventionally involves forecasting ATM cash withdrawals, and then cash replenishment optimization based on the forecast. The authors assume that reliable forecasts are already obtained for the amount of cash needed in ATMs. The focus of the article is cash repleni...
A New Automatic Teller Machine (ATM) Proposal through the Analysis of ATMs of Three Banks Yarlikas, Serdar (2009-07-24) This study tries to propose a new ATM through the analysis of automatic teller machines (ATMs) of different banks. To propose a new ATM, the ATMs of three banks in Turkey were investigated. These banks were Bank-1, Bank-2 and Bank-3. The strengths and weaknesses of the ATMs of the three banks were tried to be determined by comparing the ATMs. To determine the strengths and weaknesses of these ATMs, transaction performance analysis and a questionnaire were applied to the participants. There were 30 participa...
ATM Withdrawal Amount Forecasting Through Neural Architectures Baran, Orhun Bugra; Sunel, Saim; Karagöz, Pınar; Toroslu, İsmail Hakkı (2019-12-12) Automated Telling Machines (ATM) are one of the prominent services of the banks, which facilitate daily banking operations. Among the offered services, money withdrawal is a very basic functionality of ATMs. For the banks, it is important to manage the amount of money to be loaded in ATMs. Hence, prediction of the withdrawal amount is an important step in the ATM management. In this work, we investigate the performance of deep learning techniques for ATM money withdrawal amount prediction problem. The probl...
Modeling advanced fund transfer pricing with an application of hull-white interest-rate tree in Turkish banking sector Shakirov, Begzod; Weber, Gerhard Wilhelm; Department of Financial Mathematics (2017) The Financial Crisis in 2008 has revealed the need for a more advanced management of liquidity risk in financial institutions. This thesis aims to introduce and implement an advanced Fund Transfer Pricing (FTP) model into banking industries of the developing countries. The methodology of the FTP model, constructed in this research, measures the cost of a product’s cash-flows by splitting them into a deterministic and a stochastic component. The cost of the deterministic part is assessed as an equivalent of ...

Citation Formats

P. Karagöz and İ. H. Toroslu, “Dynamic Programming Solution to ATM Cash Replenishment Optimization Problem,” 2018, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/34378.