A Hierarchical Model for the Cash Transfer System Design Problem

Topaloglu E., Dasci A., Eken M. H.

6th International Conference on Computational Logistics (ICCL), Delft, Netherlands, 23 - 25 September 2015, vol.9335, pp.31-45 identifier identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 9335
  • Doi Number: 10.1007/978-3-319-24264-4_3
  • City: Delft
  • Country: Netherlands
  • Page Numbers: pp.31-45
  • Van Yüzüncü Yıl University Affiliated: No


This paper presents a hierarchical model that incorporates strategic, tactical, and operational decisions of cash transfer management system of a bank. The aim of the model is to decide on the location of cash management centers, the number and routes of vehicles, and the cash inventory management policies to minimize the cost of owning and operating a cash transfer system while maintaining a pre-defined service level. Owing to the difficulty of finding optimal decisions in such integrated models, an iterative solution approach is proposed in which strategic, tactical, and operational problems are solved separately via a feedback mechanism. Numerical results show that such an approach is quite effective in reaching at greatly improved solutions with just a few iterations, making it a very promising approach for similar models.