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Priority rules for check processing in multiple branch banking: An experimental analysis
Author(s) -
Mabert Vincent A.,
Showalter Michael J.
Publication year - 1980
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/0272-6963(80)90007-8
Subject(s) - liberian dollar , heuristics , float (project management) , computer science , set (abstract data type) , value (mathematics) , function (biology) , operations research , business , operations management , finance , economics , mathematics , operating system , machine learning , management , evolutionary biology , biology , programming language
The check‐processing activity represents a major function in a commercial bank. If checks are quickly processed through the bank, then funds will be transferred to appropriate accounts and the bank will experience minimum float. This paper discusses the use of priority rules to maximize the dollar value of checks processed each day. A series of experiments are developed to test a set of priority rules (heuristics) under different operating conditions of check processing capacity, transit dollar levels, and branch characteristics. The results indicate that significant differences in performance are present for different rules. Also, the usefulness of some rules are dependent upon the commercial bank's operating characteristics, which has important implications for operating managers.