Abstract
The minimal total cost replenishing policy for legal banknotes by the Bank of Israel (a ‘Federal’ Issuing Bank) was determined in three stages: (a) the market demand for banknotes of different denominations for a planning horizon of 10 years was evaluated using regression analysis; (b) the periodic supply of the banknotes to the market was estimated from the incremental market demand and the need to replace worn out banknotes; and (c) a total cost discrete Dynamic Programming model was constructed to find the optimal ordering quantities of banknotes, under the constraints of maximal storage and maximal order size capacities.
Original language | English |
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Pages (from-to) | 1-12 |
Number of pages | 12 |
Journal | International Transactions in Operational Research |
Volume | 4 |
Issue number | 1 |
DOIs | |
State | Published - 1 Jan 1997 |
Keywords
- Banknote inventory
- Banknote issuing policy
- Banknote ordering policies
- Banknote replacement
- Banknote replenishment
ASJC Scopus subject areas
- Business and International Management
- Computer Science Applications
- Strategy and Management
- Management Science and Operations Research
- Management of Technology and Innovation