Vol. 6 No. 1 (2018): BUSINESS & MANAGEMENT STUDIES: AN INTERNATIONAL JOURNAL
Articles

OPTIMIZATION OF ATM AND BRANCH CASH OPERATIONS USING AN INTEGRATED CASH REQUIREMENT FORECASTING AND CASH OPTIMIZATION MODEL

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  • Canser BİLİR,
  • Adil DÖŞEYEN
Canser BİLİR
Istanbul Sabahattin Zaim University
Bio
Adil DÖŞEYEN
Kuveyt Turk Participation Bank - R&D Center
DOI: https://doi.org/10.15295/bmij.v6i1.219

Published 2018-04-25

How to Cite

BİLİR, C., & DÖŞEYEN, A. (2018). OPTIMIZATION OF ATM AND BRANCH CASH OPERATIONS USING AN INTEGRATED CASH REQUIREMENT FORECASTING AND CASH OPTIMIZATION MODEL. Business & Management Studies: An International Journal, 6(1), 237–255. https://doi.org/10.15295/bmij.v6i1.219

Abstract

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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