ATM cash management using genetic algorithm

• Main Authors: Ahmadreza Ghodrati, Hassan Abyak, Abdorreza Sharifihosseini
• Format: Article
• Language: English
• Published: Growing Science 2013-07-01
• Series: Management Science Letters
• Subjects: Banking industry; Cash management; ATM; Inventory management
• Online Access: http://www.growingscience.com/msl/Vol3/msl_2013_192.pdf

Automatic teller machine (ATM) is one of the most popular banking facilities to do daily financial transactions. People use ATM services to pay bills, transfer funds and withdraw cash. Therefore, we can treat ATM as a tradition inventory problem and use simulation technique to analysis the amount of cash required on different occasions such as regular days, holidays, etc. The proposed model of this paper uses genetic algorithm to determine the replenishment cash strategy for each ATM. The survey uses all transactions accomplished during the fiscal years of 2011-2012 on one of Iranian banks named Ayande. The study categorizes various ATM based on the average daily transactions into three groups of low, medium and high levels. The preliminary results of our survey indicate that it is possible to do setup different strategies to manage cash in various banks, optimally.