Cash Transportation Research Articles

Terrorism Threats and Rising Bullion Van Robbery Attacks in Ghana

Bullion van robbery attacks have emerged as a significant security threat in Ghana in recent years. They pose grave consequences for national security and social, political, and economic stability. This paper provides an overview of Ghana’s rising bullion van robbery attacks. In the paper, realism theory is used to portray the rate of bullion van robberies and their daringness. The subsequent analysis illuminates the factors contributing to the rise of these attacks, including the current economic downturn, socioeconomic problems, and corruption complicity. It explores the potential involvement of organised crime syndicates. The paper recommends a multifaceted approach involving enhanced collaboration between security agencies. It also involves stringent regulation and oversight of cash transportation, technological innovations in security systems, and improved training for law enforcement personnel. Additionally, it emphasises the importance of public awareness campaigns and citizen engagement to foster a collective response to combat bullion van robberies. The paper concludes that the rising trend of bullion van robbery attacks in Ghana requires immediate attention from both the government and the private sector. A comprehensive strategy encompassing preventative measures, swift response mechanisms, and robust law enforcement efforts is imperative to mitigate the risks posed by these attacks. This will safeguard the nation's security and socioeconomic stability.

Cash stock strategies during regular and COVID-19 periods for bank branches by deep learning

Determining the optimal amount of cash stock reserved in each bank branch is a strategic decision. A certain level of cash stock must be kept and ready for cash withdrawal needs at a branch. However, holding too much cash not only forfeits opportunities to make profit from the exceeding amount of cash in the stock but also increases insurance cost. This paper presents cash stock strategies for bank branches by using deep learning. Deep learning models were applied to historical data collected by a retail bank to predict the cash withdrawals and deposits. Data preparation and feature selection to identify important attributes from the bank branch data were performed. In the prediction process, two Recurrent Neural Network techniques—Long Short-Term Memory and Gated Recurrent Units methods—were compared. Then prediction errors were measured and statistically tested for their probability distributions. These distributions together with the predicted values were used in determining the lower and upper bounds for holding the cash stock. These bounds were employed to recommend the cash stock level strategies by having two options for different situations. The impacts of COVID-19 were also tested and discussed. According to the bank under this study, the proposed strategies can reduce the amount of cash stock by more than 10% for which was their initial target. Hence, the costs of cash management such as insurance cost and cash transportation cost were reduced. Moreover, the excess cash could be used for other purposes of the bank.

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

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.

A multi-objective two-echelon location-routing problem for cash logistics: A metaheuristic approach

This study proposes a two-echelon location routing framework for cash-in-transit. In order to mitigate the risk of robbery in cash transportation, a dynamic risk index is considered. The utilized risk function encompasses both the amount of cash carried by a vehicle and the travel time of a route, and it relaxes a pre-defined parameter of risk threshold in the literature. Multiple exact and metaheuristic methodologies are utilized and evaluated on several small to medium-sized instances and a case study. The effectiveness of the proposed methods is evaluated and shown by examining various multi-objective performance measures. The case study is researched in more depth to obtain managerial insights, and the results show that depending on the risk or cost efficiency of the solutions on a Pareto frontier, the risk of traversing longer routes or transporting larger amounts of cash can be determining in locating new bank vaults.

The main aspects of foreign experience of state regulation of the market for the provision of services for the collection of funds and transportation of currency valuables

The main aspects of foreign experience of state regulation of the market for the provision of services for the collection of funds and transportation of currency valuables

A novel risk perspective on location-routing planning: An application in cash transportation

The critical role of supply chain security for businesses and government agencies has resulted in significant efforts over the last two decades to reduce vulnerability or disruption in supply chains. This paper addresses the routing problem of security carriers for high-value shipment transportation by developing a rich variant of the vehicle routing problem. To secure the route plans, the predictability of vehicle paths beside the travel costs is minimized by proposing a new integrated dynamic risk index. We present a mixed integer linear programming formulation for this problem, called the secure pickup and delivery problem with time windows (S-PDPTW). Moreover, a meta-heuristic solution method based on the adaptive large neighborhood search algorithm is developed to tackle the large-size instances. Extensive computational experiments for the target problem and the proposed algorithm demonstrate the efficiency of all developed procedures. Using the geographical information system, we provide some managerial insights based on a real case from the strategic and operational perspectives, whereby the applicability of the developed model is clearly shown in considerably reducing the risk value against a slight increase in classic objective value.

Multi-objective periodic cash transportation problem with path dissimilarity and arrival time variation

This paper introduces a multi-objective periodic routing problem in the context of cash transportation, which attempts to increase security by generating unpredictable alternative paths and spreading arrival times at each demand node. The current study covers the shortcomings of previous models on dissimilar routing and cash transportation problems from several aspects. The studied problem has three objectives, including completion times, risk of robbery, and customers’ satisfaction level considering the effects of traffic congestion as a daily phenomenon. On top of these, we extend the studied routing problem in multigraph setting, which can keep a set of efficient paths with multiple attributes (e.g., risk, time). Such representation enables us to evoke dissimilar route plans not only by reordering the sequence of nodes but also by employing alternative links even in a fix sequence of nodes. To handle the computational challenges arising from these properties, we propose a new evolutionary algorithm based on NSGA-II. The proposed method is embedded with a fuzzy logic technique to guide the applied operators and benefits from caching memory to accelerate and diversify the searching process. The results of implementing the proposed algorithm on test instances confirm the effectiveness of our method in compression to standard NSGA-II. In addition, our performed sensitivity analyses show that the multigraph setting can substantially improve the quality of solutions with respect to all studied objectives.

A new game-theoretical multi-objective evolutionary approach for cash-in-transit vehicle routing problem with time windows (A Real life Case)

Cash transfer from a central treasury to bank branches, which is with high security, is one of the crucial processes in the banking system. In this paper, a new multi-objective game theory-based model is developed to increase the security of cash-in-transit. For this purpose and in order to reduce the transportation costs, a bi-objective vehicle routing problem with time window is developed where the risk of transfers (including armed robbers attack and theft) and the distance traveled by vehicles are minimized. In order to better estimate the robber’s performance, the probability of robber’s ambush is calculated by the game theory approach, in such a way that a two-player, zero-sum game is played between the robber and the cash carrier. The probability of theft success is also estimated in the proposed approach through a multiple-criteria decision-making and in order to be further representative of real-life situations. A periodic review is also added to the proposed model to increase the cash transport security in which the previously used links would enjoy less chance of choosing in the current period. Moreover, a new multi-objective hybrid genetic algorithm incorporated with a number of new heuristics and operators is developed to tackle the proposed model. The efficiency and effectiveness of the algorithm are examined through several standard data sets, and the results indicate the effectiveness of the proposed solution algorithm. The wide applicability of our proposed approach in real-life situations is examined with a real case study as well.

A Comprehensive Mathematical Model for a Location-routing-inventory Problem under Uncertain Demand: a Numerical Illustration in Cash-in-transit Sector

The purpose of this article is to model and solve an integrated location, routing and inventory problem (LRIP) in cash-in-transit (CIT) sector. In real operation of cash transportation, to decrease total cost and to reduce risk of robbery of such high-value commodity. There must be substantial variation, making problem difficult to formulate. In this paper, to better fit real life applications and to make the problem more practical, a bi-objective multiple periods, capacitated facilities with time windows under uncertain demand (BO-PCLRIP-TW-FD) in the LRIP, motivated by the replenishment of automated teller machines, is proposed. Then, using the chance constrained fuzzy programming to deal with uncertain parameters, the comprehensive model is formulated as a crisp mixed-integer linear programming. At last, to validate the mathematical formulation and to solve the problem, the latest version of e-constraint method (i.e., AUGMECON2) is used. The proposed solution approach is tested on a realistic instance in CIT sector. Numerical results demonstrate the suitability of the model and the formulation. The ability of the model to be useful references for security carriers in real-world cases.

Research on inertial stabilization platform on mobile carrier in complex environment

The inertial stabilization platform on the mobile carrier has been widely used in military and civilian fields, such as modern satellite TV receiving and broadcasting, mobile satellite communication for vehicles and ships, as well as cash transport vehicles, public security, fire protection, disaster relief, environmental monitoring and many other industries. The platform needs the ability to isolate the effects of carrier motion, and to ensure the interception, identification and tracking of the target signal under various meteorological conditions. We choose the platform of photodetector component. It uses the electromechanical to control detector according to the instructions, automatically identifing and capturing the target. In the working process, the servo system is the key guarantee of the high performance of the platform. According to the high precision, fast response, wide frequency band and strong robust performance requirements of the system, we propose a single neuron adaptive PI+DOB (Proportional Integral+Disturbance Observer) control strategy, a method for continuous nonsingular terminal sliding mode control and a improved statistical model adaptive filtering algorithm. Through theoretical research and experimental analysis, our method improves the performance parameters based on the original system, and provides theoretical support for future researchers to develop high-precision inertial stabilization platform.

Life cycle assessment of cash payments in the Netherlands

This study quantifies the impact of the Dutch cash payment system on the environment and on climate change using a life cycle assessment (LCA). It examines both the impact of coins and of banknotes. In addition, it identifies areas within the cash payment system where the impact on the environment and on the climate can be reduced. The ReCiPe endpoint (H) impact method was used for this LCA. The cash payment system has been divided into five subsystems: the production of banknotes, the production of coins, the operation phase, the end of life of banknotes and the end of life of coins. Two functional units were used: (1) cumulative cash payments in the Netherlands in 2015 and (2) the average single cash payment in the Netherlands in 2015. Input data for all processes within each subsystem was collected through interviews and literature study. Ten key companies and authorities in the cash payment chain contributed data, i.e. the Dutch central bank, the Royal Dutch Mint, a commercial bank, a cash logistic service provider, two cash-in-transit companies, two printing works, an ATM manufacturer and a municipal waste incinerator. The environmental impact of the Dutch cash payment system in 2015 was 2.42 MPt (expressed in eco points) and its global warming potential (GWP) was 19 million kg CO2 equivalents (CO2e). For an average single cash transaction, the environmental impact was 654 μPt and the GWP was 5.1 g CO2e. The operation phase (e.g. energy use of ATMs, transport of banknotes and coins) (64%) and coin production phase (31%) had the largest impact on the environment, while the operation phase also had the largest impact on climate change human health (89%) and climate change ecosystems (56%). Finally, scenario analysis shows that reductions of the environmental impact (47%) and the impact on climate change (50%) could be achieved by implementing a number of measures, namely reducing the number of ATMs, stimulating the use of renewable energy in ATMs, introducing hybrid trucks for cash transport and matching coins with other countries in the euro area. This is the first study that investigates the environmental impact and GWP of the cash payment system in the Netherlands, by taking both the impact of banknotes and coins into account. The total environmental impact of cash payments in 2015 was 2.42 MPt and their GWP was 19 million kg CO2e.

A cash transportation vehicle routing problem with combinations of different cash denominations

AbstractThis paper investigates a new cash transportation problem, which is a variant of the capacitated vehicle routing problem. To better satisfy the demands of customers (e.g., banks, large retailers, shopping centers, automated teller machines, etc.), the combination of different cash denominations (i.e., $100, $50, $20, etc.) is considered. The robbery risk, which is measured by both the amount of cash being carried and the distance covered by the vehicle carrying the cash, is limited by a risk threshold. The problem is formulated as mixed‐integer linear programming to minimize the total cost, which consists of the total travel cost and the total penalties due to the unmet expected demand of customers. A combined hybrid tabu search metaheuristic is proposed to solve this problem. Tabu search is adopted for determining routing decisions while three methods, namely the exact method, the greedy method, and the mixed method, are proposed to be embedded within the tabu search to determine the denomination combination strategy. The numerical studies show that the proposed method makes a good tradeoff between the solution quality and the computation time. Experimental results also reveal the effects of the unit penalty and the risk threshold.

Life Cycle Assessment of Cash Payments

Purpose: This study quantifies the impact of the Dutch cash payment system on the environment and on climate change using a life cycle assessment (LCA). It examines both the impact of coins and of banknotes. In addition, it identifies areas within the cash payment system where the impact on the environment and on the climate can be reduced. Methods: The ReCiPe endpoint (H) impact method was used for this LCA. The cash payment system has been divided into five subsystems: the production of banknotes, the production of coins, the operation phase, the end of life of banknotes and the end of life of coins. Two functional units were used: 1) cumulative cash payments in the Netherlands in 2015 and 2) the average single cash payment in the Netherlands in 2015. Input data for all processes within each subsystem was collected through interviews and literature study. Ten key companies and authorities in the cash payment chain contributed data, i.e. the Dutch central bank, the Royal Dutch Mint, a commercial bank, a cash logistic service provider, two cash-in-transit companies, two printing works, an ATM manufacturer and a municipal waste incinerator. Results and discussion: The environmental impact of the Dutch cash payment system in 2015 was 2.35 MPt (expressed in eco points) and its global warming potential (GWP) was 17 million kg CO2 equivalents (CO2e). For an average single cash transaction the environmental impact was 637 µPt and the GWP was 4.6 g CO2e. The operation phase (e.g. energy use of ATMs, transport of banknotes and coins) (64%) and coin production phase (32%) had the largest impact on the environment, while the operation phase also had the largest impact on climate change (88%). Finally, scenario analysis shows that reductions of the environmental impact (51%) and the impact on climate change (55%) could be achieved by implementing a number of measures, namely: reducing the number of ATMs, stimulating the use of renewable energy in ATMs, introducing hybrid trucks for cash transport and matching coins with other countries in the euro area. Conclusions: This is the first study that investigates the environmental impact and GWP of the cash payment system in the Netherlands, by taking both the impact of banknotes and coins into account. The total environmental impact of cash payments in 2015 was 2.35 MPt and their GWP was 17 million kg CO2e.

EFFECT OF CASH TRANSPORT ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Purpose: The main aim of the study was to assess the effect of cash transport on the financial performance of commercial banks in Kenya.Methodology: The research was carried out through a descriptive survey research design. The study population was all the 43 commercial banks registered and licensed to operate in Kenya. A multi stage sampling approach was used. In the first stage, a census of all the 43 commercial banks was conducted, that is, the units of analysis were the commercial bank. In the second stage, purposive sampling was used where two respondents from every organization were taken. The study used both primary and secondary data for analysis. Primary data was collected using questionnaires while secondary data was obtained using secondary data collection template. A multiple linear regression model was used to link variables.Findings: The study findings indicated a positive correlation between cash transport and financial performance of commercial banks. Cash transport was positively and significantly related to ROA. The study concluded that cash reconciliation is positively and significantly related to financial performance of commercial banks in Kenya,Unique contribution to theory, practice and policy: The study recommends that commercial banks and other financial institutions involved in handling of cash should have a cash transport policy which clearly stipulates how cash in transit should be handled, regularly review the contracts of companies which transport cash for them so as to avoid known routines, have tracking devices in the vehicles that transport cash, engage administrative police in security arrangements when transporting cash and invest in cash in transit measures like chase cars. The study recommended further studies to establish the effect of cash handling practices on financial performance of other financial institutions other than commercial banks. This will be crucial in comparison of the results and identification of more research gaps for future studies.

A Framework to Analyze Cash Supply Chains

The Federal Reserve System of the United States is making changes to its cash recirculation policy to reduce depository institutions’ (banks’) overuse of its cash processing services. These changes will affect operating policies and costs at many institutions having large cash businesses and, in turn, impact cash transportation and logistics providers. This study provides the framework to study the cash supply chain structure and analyzes it as a closed-loop supply chain. Additionally, it describes the cash flow management system used by banks in the U.S.

Mobile Money in Tanzania

In developing countries, mobile telecom networks have emerged as major providers of financial services, bypassing the sparse retail networks of traditional banks. We analyze a large individual-level data set of mobile money transactions in Tanzania. Transactions can be classified as (i) money transfers to others; (ii) short distance money self- transportation; and (iii) money storage for short to medium periods of time. We utilize a natural experiment of an unanticipated increase in transaction fees. We find that the demand for long-distance transfers is less elastic than for short-distance transfers, which suggests that mobile networks actively compete with antiquated cash transportation systems in addition to competing with each other. Further, we find that the willingnesses to pay to avoid walking with cash an extra kilometer and to avoid storing money at home for an extra day are 1.1% and 1% of an average transaction, respectively, which demonstrates that m-money ameliorates significant amounts of crime-related risk. We explore the implications of these estimates for pricing and propose Pareto superior price discrimination.

A Survey of Transportation Problems

This paper aims at being a guide to understand the different types of transportation problems by presenting a survey of mathematical models and algorithms used to solve different types of transportation modes (ship, plane, train, bus, truck, Motorcycle, Cars, and others) by air, water, space, cables, tubes, and road. Some problems are as follows: bus scheduling problem, delivery problem, combining truck trip problem, open vehicle routing problem, helicopter routing problem, truck loading problem, truck dispatching problem, truck routing problem, truck transportation problem, vehicle routing problem and variants, convoy routing problem, railroad blocking problem (RBP), inventory routing problem (IRP), air traffic flow management problem (TFMP), cash transportation vehicle routing problem, and so forth.

Cash transportation vehicle routing and scheduling under stochastic travel times

Stochastic disturbances occurring in real-world operations could have a significant influence on the planned routing and scheduling results of cash transportation vehicles. In this study, a time–space network flow technique is utilized to construct a cash transportation vehicle routing and scheduling model incorporating stochastic travel times. In addition, to help security carriers to formulate more flexible routes and schedules, a concept of the similarity of time and space for vehicle routing and scheduling is incorporated into the model. The test results show that the model could be useful for security carriers in actual practice.

A model with a solution algorithm for the cash transportation vehicle routing and scheduling problem

Cash transportation vehicle routing and scheduling are essential for security carriers to minimize their operating costs and ensure safe cash conveyance. In real operations, to increase cash conveyance safety, there must be significant variation in daily cash transportation vehicle routes and schedules, making such vehicle routes and schedules difficult to formulate. However, for convenient planning purposes, security carriers normally plan such routes and schedules based on personal experience, without considering variations in routes and schedules from a system perspective. As a result, the obtained routes and schedules are neither safe nor efficient for transporting cash. In this study, a model is developed where the time–space network technique is utilized to formulate the potential movements of cash transportation vehicles among all demand points in the dimensions of time and space. This model incorporates a new concept of similarity of time and space for routing and scheduling, which is expected to help security carriers formulate more flexible routing and scheduling strategies. This is helpful to reduce the risk of robbery. Mathematically, the model is formulated as an integer multiple-commodity network flow problem. A solution algorithm, based on a problem decomposition/collapsing technique, coupled with the use of a mathematical programming software, is developed to efficiently solve the problem. The case study results show that our model and solution algorithm could be useful references for security carriers in actual practice.

An MIP model to optimize a Colombian cash supply chain

AbstractFinancial institutions operate a supply chain where only one product is moved across the network. Although the cash is kept in several nodes to service the demand of final customers, availability causes opportunity cost related with its investment options. When planning the inventory of cash that should be maintained across the network, transportation decisions are also expected to be made. Cash transportation has a high cost, associated with the high risk of theft. Increasing the inventory can reduce the need for transportation, but the opportunity cost can be very high. Moreover, the inventory is also related with the service level perceived for final customers; therefore because of low inventory some people are not able to make some transactions. The aim of this work is to find optimal decisions related with cash inventory and transportation across the network, trying to balance the cost of the service and the quality perceived for final users.