Cash movements optimization

This project explores the problem of minimizing cash-transfer costs between bank branches over some time by deciding when and how much to move using trucks and central-bank facilities.

The optimization model balances variable and fixed transport costs, credit and deposit costs at the central bank, and operational limits such as truck capacity, and reserve requirements (minimum and maximum cash levels at each branch).

A simple graph for a toy example case shows how the solution looks for a few branches with different parameters.

• VC = variable cost per transfer
• FC = fixed cost per transfer
• CI = cost of taking credit from Central Bank
• DI = interest paid on deposits at Central Bank
• MTC = max truck capacity