Journal of Service Science and Management

Volume 15, Issue 3 (June 2022)

ISSN Print: 1940-9893   ISSN Online: 1940-9907

Google-based Impact Factor: 1.94  Citations  

A Model for Minimizing the Cost of Distributing Metallic Coins in Mexico

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DOI: 10.4236/jssm.2022.153018    157 Downloads   601 Views  

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.

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Gómez-Vargas, M. and Huerta-Barrientos, A. (2022) A Model for Minimizing the Cost of Distributing Metallic Coins in Mexico. Journal of Service Science and Management, 15, 308-322. doi: 10.4236/jssm.2022.153018.

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