/64+9/2.

140831

140862

2016 6 29

WTO(World Trade Organization)2015 2014 18.4

5 1% 13%
45%

(Minimum cost network flow problem)

(Network analysis)(linear programming)

Abstract
As we all know, Economic Globalization is a significant feature of contemporary global economy,
also an important trend in world economic development. Under this situation, trades between countries
have constantly increased in frequency.
In the 1980s, China carried out the Reform and Opening-up Policy, and gradually took a place in
global economy. The Reform and Opening-up Policy helped China's export developed rapidly. It's
commonly known that foreign currency is the medium of transaction, and, with economic reform
deepened, international trade companies usually require more for foreign currency.
When we are exchanging currency, the bank will charge a certain proportion of transaction fee
depending on the currency between two countries. Also, every bank has its maximum limit to transform
a particular amount of money to another, which not only cause the situation even more complex, but
also costly. Nevertheless, our groups goal is to find out the lowest transaction cost between the
currencies we want to exchange, and to save as much money we can for the company.
No doubt that the exchange currency between countries float constantly, also transaction fees drifts
depending on which currency youre changing. Thus, we set up a net model to help companies, working
on international trade, spend the smallest amount of money when exchanging currency, cutting off
unnecessary expenses.
Keywords: Capacited minimum network flow problem, Currencies exchange, Money-in-motion


.................................................................................................................................... 4
1.1 ............................................................................................................................. 4
1.2 ............................................................................................................................. 4
1.3 ............................................................................................................................. 5
.................................................................................................................................... 5
2.1 .............................................................................................................................. 5
2.2

Linear Program ........................................................................................ 7

2.3 Excel ....................................................................................................... 8

2.4 Excel SOLVER ..................................................................................................... 10
.......................................................................................................................................... 10
3.1 ................................................................................................................... 10
3.2 ................................................................................................................... 10
.................................................................................................................................. 11
4.1 ........................................................................................................ 11
4. 2 ................................................................................................... 14
.......................................................................................................................................... 17


1.1
WTO(World Trade
Organization)2015 2014 18.4
5

(currency relaxation)

1.2

(Minimum cost network flow problem)

(Network analysis)(linear programming)

EXCEL (SLOVER)

 ABC(HKD)(TWD)
(CNY)(JPN)(SGD)(GPB)(EUR)
(USD)

1.3

Excel

ABC HKDTWD CNY USD USD

USD JPYSGDGBPERU
USD

(network flow analysis)

2.1
(node)
(ABC)(ABC)(HKD),
(TWD), (CNY)(USD)
(link) 29
(Cost)(Capacity)

ABC

(ABC)( ) 0
(ABC) 29 8

ABC 4
Link
1
2
3
4

From i
ABC
ABC
ABC
USD

To j

HKD
TWD
CNY
ABC

Cost cij
0
0
0
0

Capacity uij
3180000
4575000
2261760
10016760

7 29
Link
5
6
7
8
9
10
11
12

From i
HKD
HKD
HKD
HKD
HKD
HKD
HKD
TWD

To j
TWD
CNY
JPY
EUR
GBP
SGD
USD
HKD

Cost cij
0.02717
0.01004
0.00163
0.00629
0.01387
0.00699
0.00472
0.00254

Capacity uij
5000000
5000000
2000000
200000
200000
200000
5000000
5000000

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

TWD
TWD
TWD
TWD
TWD
TWD
CNY
CNY
CNY
CNY
CNY
CNY
CNY
JPY
EUR
GBP
SGD

CNY
JPY
EUR
GBP
SGD
USD
HKD
TWD
JPY
EUR
GBP
SGD
USD
USD
USD
USD
USD

0.05030
0.00166
0.00749
0.01442
0.00484
0.00656
0.00240
0.01274
0.00163
0.00615
0.04941
0.00697
0.00470
0.00000
0.00462
0.00466
0.00452

450000
120000
340000
20000
607000
150000
5000000
450000
120000
2300000
43000
2300000
120000
4400000
32000
150000
3549000

2.2 Linear Program

N N={(ABC), (CNY), (TWD), (HKD), (JPY), (GBP),
(EUR), (SGD), (USD)} A 29 F(i) T(i) i
T(i) i i j
Xij cij uij
2.1
(1) 9 i (2)
25 (ij) uij(3)(4)
ABC (5) 29
Objective function: TotalCost= Minimum

cX
ij

ij

(ij )A

Subject to:

X X
ij

F (i)

ij

= 0, i N;

(1)

T (i)

Xij uij , (ij) A, i, j (ABC);

(2)

Xij = uij , (ij) A, i (ABC);

(3)

Xij = uij , (ij) A, j (ABC);

(4)

Xij 0, (ij) A.

(5)

(2)

2.3 Excel
Excel 3~5 ABC
HKDTWDCNY HKD2500
TWD1500 CNY1520
10016760

Excel Capacitey
ABC HKDTWDCNY
Current money
25,000,000 HK Dollars
150,000,000 TW dollars
15,200,000 CN Yuan

Current rate to 1 US Dollar

0.1272
0.0305
0.1488

Equivalent to US dollar
3180000
4575000
2261760
Total
10016760

29 A9-A37 B9-B37
FROM TO C9-C37 Xij FLOW
E9-E37 uij F12-F37 G12-G37
H12-H37 [-]/() cij
2.2 C38

SUMPRODUCT(C9:C37,H9:H37)C39=C38/E37 L9-L17
(1) SUMIF(FROM,i,FLOW)- SUMIF(TO,i,FLOW)
i K9-K17N9-N17 (1)0
C12-C36 (2) Xij E12-E36 (2)
uij
C9-C11 (3) Xij; E9-E12 (3)
uij
C37 (4) Xij E37 (4)
uij

5000000000USD

Excel Uncapacited

2.4 Excel SOLVER

Capacited
Excel-SOLVER
Capacited-PrimeCapacited-Dual Uncapacited
Uncapacited-PrimeUncapacited-Dual

Excel-SOLVER

3.1

3.2
A12-H36

(ABC)

4.1
Capacited-PrimeCapacited-Dual E16
$65950$10016760 0.6584%
63-87 Xij
(Xij=0)(Xij=uij)
(0<Xij<uij)( C14,C18,C21,C24,C25,C28,C32,C34) Capacity uij
HKD JPY HKD
0.0100350 25,0(00,000HKD 3,180,000USD
(HKD)(JPY) $2,000,000 0.00471698 (HKD)
(USD) $5,000,000 HKD C14+C18(200000+500000=700000), HKD
C9+C19+C26(3180000+3698000+ 122000=700000)= 56

(Xij=0)
(Xij=uij)
(0<Xij<uij) 0

4. 2
Uncapacited-Prime Uncapacited-Dual E16
$16463$10016760 0.1644%
63-87 Xij (Xij=0)
(0<Xij<uij) HKDTWDCNY JPY(
C14=3180000, C21=4575000, C28=2261760),JPY USD C33=10016760
JPY

(Xij=0) 0
(0<Xij<uij) 0

(Capacited)(Unapacited) 0.6584%
0.1644% USD
USD 0.6584%
USD 0.1644%

HKDTWDCNY

1
2

excel

3
excel