A Computerized Operations Scheduling Model for the Reduction of Commercial Bank Float

The reduction in bank float requires that cheque processing procedures be upgraded in order to reduce the elapsed time between the receipt of a cheque and its presentation for collection at the bank upon which it is drawn. Traditionally, attempts to reduce float have focussed on the procedures for receiving checks and processing steps in preparation for clearing. Although the transporting of cheques from receiving locations to the processing location would most likely be the most significant factor in the elapsed time between receipt and eventual presentation for clearance, the float implications has largely been ignored in the development of transportation schedules in commercial banks. In attempting to maximize cheques processed, the timing of branch pickups should be based upon branch volume available and proof and transit processing capacity as well as travel time considerations. A heuristic model described in this paper represents the first methodology providing the opportunity for simultaneously evaluating these variables to develop schedules which offer opportunities for improvements in bank funds flow.