Multi-objective optimisation with stochastic discrete-event simulation in retail banking : a case study

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dc.contributor.authorScholtz, E.en_ZA
dc.contributor.authorBekker, J.en_ZA
dc.contributor.authorDu Toit, D.en_ZA
dc.date.accessioned2013-07-03T08:18:35Z
dc.date.available2013-07-03T08:18:35Z
dc.date.issued2012
dc.descriptionCITATION: Scholtz, E., Bekker, J. & Du Toit, D. 2012. Multi-objective optimisation with stochastic discrete-event simulation in retail banking: a case study. Orion, 28(2):117–135, doi:10.5784/28-2-116.
dc.descriptionThe original publication is available at http://orion.journals.ac.za
dc.description.abstractThe cash management of an autoteller machine (ATM) is a multi-objective optimisation problem which aims to maximise the service level provided to customers at minimum cost. This paper focus on improved cash management in a section of the South African retail banking industry, for which a decision support system (DSS) was developed. This DSS integrates four Operations Research (OR) methods: the vehicle routing problem (VRP), the continuous review policy for inventory management, the knapsack problem and stochastic, discrete-event simulation. The DSS was applied to an ATM network in the Eastern Cape, South Africa, to investigate 90 different scenarios. Results show that the application of a formal vehicle routing method consistently yields higher service levels at lower cost when compared to two other routing approaches, in conjunction with selected ATM reorder levels and a knapsack-based notes dispensing algorithm. It is concluded that the use of vehicle routing methods is especially beneficial when the bank has substantial control over transportation cost.
dc.description.urihttp://orion.journals.ac.za/pub/article/view/116
dc.description.versionPublisher's version
dc.format.extent19 pages
dc.identifier.citationScholtz, E., Bekker, J. & Du Toit, D. 2012. Multi-objective optimisation with stochastic discrete-event simulation in retail banking: a case study. Orion, 28(2):117–135, doi:10.5784/28-2-116.
dc.identifier.issn2224-0004 (online)
dc.identifier.issn0259-191X (print)
dc.identifier.otherdoi:10.5784/28-2-116
dc.identifier.urihttp://hdl.handle.net/10019.1/81090
dc.language.isoen
dc.publisherOperations Research Society of South Africa
dc.rights.holderAuthors retain copyright
dc.subjectStochastic processesen_ZA
dc.subjectBanks and bankingen_ZA
dc.subjectAutomated tellersen_ZA
dc.titleMulti-objective optimisation with stochastic discrete-event simulation in retail banking : a case studyen_ZA
dc.typeArticle
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