Optimizing the Production Cost of Minting with Mixed Integer Programming

Autor:	Alfaro, Carlos A., Martínez-Noriega, Raúl, Guadarrama, César, Sánchez-Flores, Adolfo, Aguilera, Jorge A.
Rok vydání:	2016
Předmět:	Mathematics - Optimization and Control 90C11 90B05 90B30 90B50
Druh dokumentu:	Working Paper
Popis:	For central banks, managing the minting is one of the most important task since a shortage yields negative economic and social impacts, and the budget committed for minting is one of the largest within the central banks. Hence, the central bank requires to find the mixture of coins to be produced that satisfies the demand, inventory and production constraints while minimizing the cost. We propose a mixed-integer programming model that minimize the cost of minting by reducing the number of extra-shifts required while fulfilling the constraints. We also perform a simulation with data of a central bank which shows that the model reduces in 24\% the cost of extra-shifts used during 21 quarters, compared with the spreadsheet based approach used currently at the operation. Comment: 13 pages, 5 figures
Databáze:	arXiv
Externí odkaz:	http://arxiv.org/abs/1608.04321 Zobrazit plný text záznamu View this record from Arxiv