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Multi-objective optimization for a strategic ATM network redesign problem

Author

Listed:
  • Are Denstad

    (Norwegian University of Science and Technology)

  • Einar Ulsund

    (Norwegian University of Science and Technology)

  • Marielle Christiansen

    (Norwegian University of Science and Technology)

  • Lars Magnus Hvattum

    (Molde University College)

  • Gregorio Tirado

    (Complutense University of Madrid)

Abstract

During the last decades, the banking industry has been facing multiple challenges, from changes in regulations and legal systems, to the irruption of new technologies. A constant adaptation to the rapidly changing business ecosystem is therefore required. This paper deals with one type of efficiency improvement that is required from traditional banking operations as a result of the current shift in the industry towards more use of technology. That is, we deal with the decision-making process related to the redesign of existing ATM networks, which is currently being considered by many banks worldwide. This redesign is mainly a consequence of an increased use of electronic payment methods and card transactions, which have made the demand for cash decrease significantly. We describe a multi-objective mathematical programming model to be used as a tool when making strategic decisions regarding the bank ATM network redesign. Total costs and the coverage of customers and turnover are considered as conflicting performance attributes and analyzed through several multi-criteria techniques, namely the weighted sum and Tchebycheff methods and Archimedean goal programming. Among other insights, the results on a realistic case study show that the potential for cost reductions is high and that the consideration of both customer coverage and turnover coverage is crucial for the performance of the network.

Suggested Citation

  • Are Denstad & Einar Ulsund & Marielle Christiansen & Lars Magnus Hvattum & Gregorio Tirado, 2021. "Multi-objective optimization for a strategic ATM network redesign problem," Annals of Operations Research, Springer, vol. 296(1), pages 7-33, January.
    • Handle: RePEc:spr:annopr:v:296:y:2021:i:1:d:10.1007_s10479-019-03224-z
    DOI: 10.1007/s10479-019-03224-z
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    References listed on IDEAS

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    Cited by:

    1. Suder, Marcin & Gurgul, Henryk & Barbosa, Belem & Machno, Artur & Lach, Łukasz, 2024. "Effectiveness of ATM withdrawal forecasting methods under different market conditions," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    2. Shouxu Song & Yongting Tian & Dan Zhou, 2021. "Reverse Logistics Network Design and Simulation for Automatic Teller Machines Based on Carbon Emission and Economic Benefits: A Study of the Anhui Province ATMs Industry," Sustainability, MDPI, vol. 13(20), pages 1-24, October.
    3. Borja Ena & Alberto Gomez & Borja Ponte & Paolo Priore & Diego Diaz, 2022. "Homogeneous grouping of non-prime steel products for online auctions: a case study," Annals of Operations Research, Springer, vol. 315(1), pages 591-621, August.

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