Forecasting and Optimization (FO)

Introduction
The module is part of the Frontend Management cluster which provides for the management of the banking outlets, cash machines, (night-deposit) safes, retail shops and retail safes. FO contains the forecasting of cash requirements based upon trend analysis and settings as well as the optimization by generating the best order for replenishment.

Business context
Across the supply chain the level of cash needs to be as low as possible and be made available just-in-time. The cost of cash is decreased by just-in-time optimization of cash replenishment. The frontend of the supply chain makes cash available to consumers and retailers and the cash in and cash out are leading for the supply chain backend to respond.

Description
The forecasting functionality makes use of historical data of cash issuing and depositing for any type of cash point such as an ATM, a cash deposit machine, a bank branch, a retail deposit safe and a night-deposit safe. A trend is determined in terms of a weekday pattern, a month pattern and a seasonal pattern.

The optimization functionality takes the decision on the date and amount of the best order. For this decision making process the following settings are being used:
- Costs: interest, service (cash centre and CIT);
- Accessibility: Closing periods, opening times;
- Process specifics: Order lead time, Grouping of cash points;
- Cash point specifics: insurance limits, cassette & machine configuration, thresholds, events.
Each cash point is configured in terms of issuing, depositing and recycling characteristics. The settings include the level of optimization; 1 is for threshold based conclusions, level 2 for trend analysis conclusions and level 3 for grouping conclusions. Level 1 and 2 can be combined with level 3.

The best order determined by the functionality is forwarded to the Order Management (OM) module for further approval and processing.

Module input
· Cash point information
· Settings for optimization
· Pricing rules for services

Module output
· Information on trends for cash points
· Optimized orders for cash services

User profile
Cash Manager, Order Manager, Bank branch manager, Retail Cash Manager