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Dynamic Programming Solution to ATM Cash Replenishment Optimization Problem

  • Fazilet Ozer
  • Ismail Hakki Toroslu
  • Pinar KaragozEmail author
  • Ferhat Yucel
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 866)

Abstract

Automated Telling Machine (ATM) replenishment is a well-known problem in banking industry. Banks aim to improve customer satisfaction by reducing the number of out-of-cash ATMs and duration of out-of-cash status. On the other hand, they want to reduce the cost of cash replenishment, also. The problem conventionally has two components: forecasting ATM cash withdrawals, and then cash replenishment optimization on the basis of the forecast. In this work, for the first component, it is assumed that reliable forecasts are already obtained for the amount of cash needed in ATMs. We focus on the ATM cash replenishment component, and propose a dynamic programming based solution. Experiments conducted on real data reveal that the solutions of the baseline approaches have high cost, and the proposed algorithm can find optimized solutions under the given forecasts.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Fazilet Ozer
    • 1
  • Ismail Hakki Toroslu
    • 1
  • Pinar Karagoz
    • 1
    Email author
  • Ferhat Yucel
    • 2
  1. 1.METU Computer Engineering DepartmentCankaya AnkaraTurkey
  2. 2.Intertech Bilgi Islem Ve Pazarlama Ticaret A.S.IstanbulTurkey

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