Study for the Optimal Location of Bitcoin Automatic Teller Machines (BTM) through Operations Research (#259)

Authors

Urbizo Ordóñez, Uriel

Abstract

The main objective of this research was to find optimal locations for the installation of Bitcoin ATMs (BTM) through operations research tools, to help increase the economic income of the company La Bitcoinera. First, the population sample of possible locations was defined as 23 shopping centers in the central district in Honduras, Central America, specifically 12 in Tegucigalpa and 11 in Comayagüela, which were identified by convenience sampling due to the difficulty in obtaining the required information. Next, the variables to be used in the formula of the center of gravity method were selected with the help of data collection from similar studies and a survey, deciding to use the variables of rental cost, influx of people and the geographical coordinates of each possible location. Then, applying the center of gravity method, optimal locations were found in Tegucigalpa and Comayagüela for the installation of two BTM’s. After several iterations of calculations, it resulted that the closest shopping centers to the optimal locations are Paseo Juan Pablo located in Tegucigalpa and the Metromall shopping center located in Comayagüela. Subsequently, the proposed locations mentioned above were validated by comparing the current and projected incomes, resulting in the suggested locations considered being feasible for La Bitcoinera because they would generate more income.