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The IUP Journal of Operations Management

February '09
Focus

This issue contains four articles and one case study. The first article on "Meta Heuristic Approach for Simultaneous Delivery and Pick-up Problem of Banking Industry"

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Metaheuristic Approach for Simultaneous Delivery and Pick-Up Problem of Banking Industry
Web Integrated Decision Support System for Machine Scheduling and Inventory Management
A Genetic Algorithm Based Optimization Technique for Scheduling Identical Machines in Flexible Manufacturing Systems
Interactive Decision Making in Prioritized Unbalanced Transportation Problems
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Metaheuristic Approach for Simultaneous Delivery and Pick-Up Problem of Banking Industry

-- S P Anbuudayasankar, K Ganesh and K Mohandas

Commercial banks are trying to change customer preference from doing banking transactions through branch channels to electronic channels. Consequently, an increasing number of Automated Teller Machines (ATMs) are being setup. This paper deals with Vehicle Routing Problem (VRP) arising from an ATM routing with Simultaneous Delivery and Pick-up (SDP), a real-world routing-scheduling problem. The major goal of this research is to develop an efficient heuristic that solves the ATM routing problem, VRPSDP and produces the optimal solution with the objective of minimizing the distance travelled in a reasonable computation time. Simulated Annealing is developed as the solution methodology and compared with benchmark data-sets. The results are encouraging in terms of solution quality and computation time.

Web Integrated Decision Support System for Machine Scheduling and Inventory Management

-- L Sivarama Krishna, G Ranga Janardhan and C S P Rao

Scheduling and inventory management are two important decision-making processes in any manufacturing industry. Scheduling is done with many objectives, like, aiming to minimize the makespan or minimizing the number of tardy jobs. Inventory management refers to the process of managing stocks of finished products, semi-finished products and raw materials by a firm so as to minimize the total inventory cost. Generally, these processes are treated as two different aspects in the decision-making process. This paper deals with the development of a Decision Support System (DSS) that integrates machine scheduling with inventory management for a multi-product manufacturing industry. The system was developed in three phases. The first phase involves the development of a scheduling system with makespan minimization as the primary objective. The second phase involves the development of the inventory management system and integrating it with the scheduling system. The third phase involves making the system web enabled, so that it provides the flexibility of distributed decision making to the decision makers.

A Genetic Algorithm Based Optimization Technique for Scheduling Identical Machines in Flexible Manufacturing Systems

-- Vijay Kumar M, A N N Murthy and K Chandrashekhara

The designers and manufacturers of Flexible Manufacturing Systems (FMS) strive to ensure maximum flexibility in terms of design, planning, scheduling and control in the system. In practice, it is hard to accommodate frequent variations in the part designs of incoming jobs during the implementation of such manufacturing systems. The variation in job design can be efficiently overcome by scheduling a variety of incoming parts into the system. In this paper, an appropriate heuristic-based scheduling mechanism is designed and developed to generate a nearer to optimum schedule, using Genetic Algorithm (GA). GA is used in solving optimization problems in view of its characteristic of high efficiency and being fit for practical application. A GA based on machine code is developed and presented for minimizing the makespan in an identical machine scheduling problem. The GA developed is efficient and advantageous for scheduling scale identical parallel machine manufacturing systems for minimizing the makespan, which is demonstrated through numerical solutions. The quality of its solution is better suited over heuristic and Simulated Annealing (SA) algorithms.

Interactive Decision Making in Prioritized Unbalanced Transportation Problems

-- R K Dwivedi, N N Mehta and O P Dubey

In transportation problems faced by a government or a business firm, the problems are not balanced, i.e., supply is less than demand or vice-versa due to paucity of funds. Sometimes, it becomes necessary to transport a certain percentage of commodities (demand) irrespective of the transportation cost. Almost all decision makers dealing with transport management are interested in minimization of total transportation cost and transportation time to each destination along with the fulfillment of priorities (goals). The present paper deals (on a small scale) with a prioritized unbalanced problem regarding transportation of coal from four production points (collieries) to three places under Bharat Coking Coal Ltd. (BCCL) in the Kuzu/Charhi area.

Efficient Project Management at TransWorks Information Services Pvt. Ltd., An Indian Based BPO Company

-- Tushar Sen

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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