ATM cash management for a South African retail bank

[摘要] ENGLISH ABSTRACT: Cash can be seen as a fast moving consumer good. Approachingcash as inventory within the ATM cash management environmentof a South African retail bank, provided the opportunity to applywell known industrial engineering techniques to the financial industry.This led to the application of forecasting, inventory management,operational research and simulation methods.A forecasting model is designed to address the multiple seasonalitiesand calendar day effects that is prevalent in the demand for cash.Special days, e.g. paydays, lead to an increase in demand for cash.The weekday on which the special day falls will also influence the demand.The multiplicative Holt-Winters method is combined with animprovised distribution method to determine the demand for cash forthe region and per ATM. Reordering points are calculated and simulatedto form an understanding of the effect this will have on the ATMnetwork. Direct replenishment and the traveling salesman problem isapplied and simulated to determine the difference in using one or theother.Various simulation models are build to test the operational and financialimpact when certain variables are amended. It is evidentthat more work is required to determine the optimal combination ofvariable values, i.e. forecasting frequency, aggregate forecasting orindividual forecasting, reorder levels, loading levels, lead times, cashswap or cash add, and the type of transportation method. Each one ofthese are a science in itself and cannot be seen (calculated) in isolationfrom the other as a change in one can affect the overall operationalefficiency and costs of the ATM network.The thesis proves that significant cost savings is possible, compared tothe current set-up, when applying industrial engineering techniquesto a geographical ATM network within South Africa.

[发布机构] Stellenbosch University