TITLE:
A Model for Minimizing the Cost of Distributing Metallic Coins in Mexico
AUTHORS:
Mariana Gómez-Vargas, Aida Huerta-Barrientos
KEYWORDS:
Optimization Model, Bank of Mexico, Metallic Coins, Distribution
JOURNAL NAME:
Journal of Service Science and Management,
Vol.15 No.3,
June
30,
2022
ABSTRACT: Currently, cash distribution experts know the importance of supporting decisions in
an optimization model. Different enterprises and institutions design their
distribution routes in an empirical way, without using robust theoretical tools
that minimize transport costs and maximize levels of customer satisfaction.
Particularly, considering the case of the Bank of Mexico, the distribution of
metallic coins is a fundamental process. However, there are areas of opportunity
in planning and scheduling distribution routes, which could lead to coin
shortage, and delays in deliveries to end-users generating high
costs for the institution. The objective of this study is to propose the use of
an optimization model for minimizing the cost of distributing metallic coins in
Mexico, which has different delivery points all over the country. The number of
the required origin warehouses is determined, as well
as the routes for each vehicle, minimizing the distribution costs. Based on the
results, this research is also considered relevant for other banking
institutions to help in their making-decision process.