What is the Optimal Change Strategy for a Baker?

In summary, the conversation discusses the question of how much and which bank notes a baker should have at the beginning of the day in order to always have enough change for customers. It also touches on the idea of probability and combinatorics in determining the proper amount of small coins to keep on hand based on the customers' distribution of available notes. The outcome of this question depends on the bank's past experience and the prices of the bakery.
  • #1
Gerenuk
1,034
5
Does anyone know results about how much and which bank notes a baker should have at the beginning of the day, to insure we will always be able to give proper change to customers?

Maybe the question could be:
Basically given a distribution of bank notes of the customers, what is the probability that the baker will have change for N deals?
 
Mathematics news on Phys.org
  • #2
That is not a mathematics question. It depends entirely upon what the bank's past experience has been.
 
  • #3
Then you haven't understood the question. I'm also talking about a baker and not a bank. It is probability theory and maybe combinatorics.

If every customer of the baker always pays with 100 euro bills, then the baker surely will run out of change quickly. If every customer pays in 10 cent coins, then everything is fine. So given the customers with a defined distribution of available notes (scaled to the prices of the bakery), which amount of small coins should the baker keep in order to be able to give change to all customers?
 

1. What is the "Maths of Change Money Supply"?

The "Maths of Change Money Supply" refers to the mathematical formula and equations used to calculate and understand the changes in the supply of money in an economy.

2. How is the money supply calculated?

The money supply is calculated by adding together all of the physical currency (such as bills and coins) in circulation, as well as all of the demand deposits (checking accounts) and other liquid assets held by individuals and businesses. This calculation is known as the M1 money supply.

3. What factors influence the change in money supply?

The change in money supply can be influenced by several factors, including the actions of central banks like the Federal Reserve, the demand for money by individuals and businesses, and the overall health and stability of the economy.

4. What is the relationship between money supply and inflation?

The money supply and inflation have a direct relationship, known as the Quantity Theory of Money. This theory states that the more money there is in circulation, the higher the prices of goods and services will be. This is because an increase in money supply means there is more money available to spend, leading to higher demand and potentially driving up prices.

5. How can changes in money supply impact the economy?

Changes in money supply can have a significant impact on the economy. An increase in money supply can lead to economic growth and stimulate consumer spending, while a decrease in money supply can slow down the economy and potentially lead to a recession. It is important for central banks to carefully monitor and manage the money supply to maintain a healthy and stable economy.

Similar threads

I A Money Swapping Curiosity
    • General Math
Replies
28
Views
2K
I Optimization problem with multiple outputs: impossible?
    • General Math
Replies
6
Views
1K
Changing Professions: What Makes It an Appropriate Strategy?
    • General Discussion
Replies
1
Views
691
I Roulette system -- which optimization is better?
    • General Math
Replies
11
Views
2K
Job Skills What Can I Do Science/Math Related While Working on Undergrad Degree?
    • STEM Career Guidance
Replies
4
Views
583
A Optimal strategy for repeated coin toss game - with possible bias
    • Set Theory, Logic, Probability, Statistics
Replies
20
Views
3K
LV Harmonic Filters for Utility Customer's Power Outages?
    • Electrical Engineering
Replies
16
Views
3K
I What are P03 procedures or guidelines?
    • Cosmology
Replies
3
Views
730
Help finding winning strategies in the following tile game?
    • General Math
Replies
2
Views
2K
MHB Expected Value of Gambling Strategy - Martin's Winnings
    • Set Theory, Logic, Probability, Statistics
Replies
2
Views
4K

Hot Threads

Recent Insights

Back
Top