Department of Industrial Engineering

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Browsing Department of Industrial Engineering by Subject "Active rectifiers"

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    ATM cash management for a South African retail bank
    (Stellenbosch : Stellenbosch University, 2011-12) Du Toit, Delyno Johannes; Bekker, James F.; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
    ENGLISH ABSTRACT: Cash can be seen as a fast moving consumer good. Approaching cash as inventory within the ATM cash management environment of a South African retail bank, provided the opportunity to apply well 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 seasonalities and 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 an improvised distribution method to determine the demand for cash for the region and per ATM. Reordering points are calculated and simulated to form an understanding of the effect this will have on the ATM network. Direct replenishment and the traveling salesman problem is applied and simulated to determine the difference in using one or the other. Various simulation models are build to test the operational and financial impact when certain variables are amended. It is evident that more work is required to determine the optimal combination of variable values, i.e. forecasting frequency, aggregate forecasting or individual forecasting, reorder levels, loading levels, lead times, cash swap or cash add, and the type of transportation method. Each one of these are a science in itself and cannot be seen (calculated) in isolation from the other as a change in one can affect the overall operational efficiency and costs of the ATM network. The thesis proves that significant cost savings is possible, compared to the current set-up, when applying industrial engineering techniques to a geographical ATM network within South Africa.