A QUBO-Based Optimization Framework for ATM Cash Replenishment Scheduling

Abstract

The management of cash replenishment in Automated Teller Machine (ATM) networks requires scheduling recharges in order to minimize operational costs while maintaining high service levels and avoiding cash-outs, under uncertain and time-varying withdrawal demand. This work formulates the ATM cash replenishment problem through a Quadratic Unconstrained Binary Optimization (QUBO) model, which naturally captures nonlinear cost interactions, while incorporating operational constraints through penalty terms. The objective function combines fixed and variable replenishment costs with co-location discounts, as well as penalties for a late replenishment that could cause a service interruption. The resulting QUBO instances are solved using MegaQUBO, a GPU-accelerated QUBO solver. An empirical evaluation on a real dataset of 276 ATMs located in Italy, covering four representative months of 2022 (April, May, October, and November), benchmarks the proposed approach against a threshold-based operational policy. Results show consistent cost reductions of approximately 15%-18% while maintaining an excellent average service level (around 99.8%-99.9). Overall, the study demonstrates that QUBO-based optimization, coupled with GPU-based solving, can provide a practically deployable decision-support tool for large-scale ATM cash logistics.