Cost optimization model for different kinds of currencies in RMB's issuing

Based on the actuality of manufacturing, issuing and circulative environment of RMB currency in China, a cost optimization model for different kinds of currencies in RMB's issuing is proposed, by analyzing the circulative characters of currencies with different face value and different material. The proposed model considers not only the cost of currency's manufacturing and transportation, but also other kinds of cost in circulation. The manufactural ability of banknote printing enterprises and mints and some other facts are considered as constraints in this optimization model, so it can satisfy the demands on the amount, the kinds and the cost control of RMB currency's issuing, by the hierarchy method in optimization.