What CIT Routing Optimization is
The cost of cash operations for banks can be divided into two categories:
1. Cost of idle cash which stays in ATM and branch vaults
2. Cost of cash transfers from cash centers to ATM and branches. This operation is termed Cash-In-Transit (CIT) in financial terminology.
Hence, the both numbers are important in reducing the total overall cost of cash operations in a financial institution. An ideal optimization system should be able to handle both Cash Optimization and CIT Routing Optimization. This system should further be able to handle the trade-offs between each type of costs to achieve optimality and to ensure the quality of service to financial institutions.
A Unified Replenishment Planning System
An unified system supporting both Cash Optimization and CIT Routing Optimization can coordinate the optimization efforts to minimize the cash handling costs in a very efficient way.
Let’s analyze one of the benefits of a unified system on a figure. Below figure displays two routes for two days of cash delivery to ATMs. As shown in the figure, there are ATMs to be replenished on the first day and others to be replenished in the second day. However, there are ATMs that are close to each other which can also be replenished on the first day. However, this requires a cash flow prediction and replenishment planning for those ATMs so that optimal amount of money can be replenished on the first day. A CIT Routing Optimization system which is integrated to cash prediction with global cost minimization target, can handle this situation in a very efficient way as depicted in Figure 2.
Figure 1. Initial route planning without cash optimization integration
Figure 2. Optimal CIT route planning with integrated cash optimization system
As demonstrated with two check signs, two ATMs replenishment plans are switched to the first day as an output of cash management and CIT Routing optimization systems.
In addition to solving cash prediction and route optimization, the CIT Routing Optimization is capable of :
- Efficient use of existing truck fleet to comply with delivery requirements
- Managing cash replenishment amounts based on trucks’ insurance limits
- Assigning trucks to territories to optimize the delivery process
- Planning multi-stop routes
- Adapting the delivery order to live traffic data
Arute Solutions’s Routing+ is an advanced CIT Routing Optimization platform that can solve advanced assignment and optimization problems. With a decade of experience, Routing+ provides a wide range of functionalities and algorithms tailoring capabilities with Arute’s experienced software development and operations research teams.