A System Model for Controlling the Operations of Check Processing in a Branch Bank Network

Joseph Anthony Svestka
Additional contact information
Joseph Anthony Svestka: University of Wisconsin, Milwaukee

Interfaces, 1976, vol. 7, issue 1-part-2, 69-79

Abstract: Check processing in large commercial banks offers many opportunities for savings due to the great operational costs, and the time value of money. However, savings can be realized only through the control of the system. Since the check processing operation is functionally interdependent with other departments, often with conflicting objectives, changes can be difficult to make. This paper contains a description of the design and the successful implementation of a flexible system model, and the subsequent use of the model to control a check processing operation.The system model employs a multiple salesman traveling salesman algorithm, a bottleneck assignment algorithm, a dynamic programming algorithm, regression models, various heuristic routines and report generating programs, all interrelated to generate coherent solutions. The model is adaptive; as the system or environment changes so does the solution. The model is able to generate solutions which take into account the balancing of messenger crew work loads, check volumes, transit dollars, minimum distance routines, work flow smoothing, banking hours, expected branch personnel quit times, and the restrictions placed by the precise timing requirements of the delivery of payrolls, lottery tickets, drafts, and return items.An application of the system model has saved in the neighborhood of 1 million dollars in labor and transportation costs alone. A less tangible, though, none the less important benefit has been the establishment of good control of the entire process.

Date: 1976
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/inte.7.1pt2.69 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:7:y:1976:i:1-part-2:p:69-79

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().