Title: A model with an efficient tabu search for the cash pickup and delivery problem

Authors: Guoxun Xu; Ting Xiang; Yanfeng Li; Jun Li

Addresses: Tourism College, Hainan University, Haikou 570228, China ' School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China ' School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China ' School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China

Abstract: The cash transportation cost in the banking system, which is one of the most important components of the currency issuance cost, could be reduced by the optimisation of the cash transportation process. In this study, we propose a cash pickup and delivery problem to deal with the distribution of new banknotes, the collection of used banknotes, and the disposal of damaged banknotes in the banking system. The proposed problem is formulated as a mixed-integer linear programming model to minimise the total transportation cost and the total penalty cost due to unmet target demand. An efficient tabu search heuristic is developed to solve the proposed problem. Numerical results illustrate the efficiency of the proposed solution method and demonstrate the effect of the risk threshold on the combination of cash denominations.

Keywords: cash transportation; pickup and delivery; mixed-integer linear programming; tabu search.

DOI: 10.1504/IJSTL.2022.125834

International Journal of Shipping and Transport Logistics, 2022 Vol.15 No.1/2, pp.71 - 90

Accepted: 04 Jan 2021
Published online: 30 Sep 2022 *

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