Settlement Fund Circulation Problem

Abstract

In the economic activities, the central bank has an important role to cover payments of banks, when they are short of funds to clear their debts. For this purpose, the central bank timely puts funds so that the economic activities go smooth. Since payments in this mechanism are processed sequentially, the total amount of funds put by the central bank critically depends on the order of the payments. Then an interest goes to the amount to prepare if the order of the payments can be controlled by the central bank, or if it is determined under the worst case scenario. This motivates us to introduce a brand-new problem, which we call the settlement fund circulation problem. The problems are formulated as follows: Let G=(V,A) be a directed multigraph with a vertex set V and an arc set A. Each arc ain A is endowed debt d(a)ge 0, and the debts are settled sequentially under a sequence pi of arcs. Each vertex vin V is put fund in the amount of p_{pi}(v)ge 0 under the sequence. The minimum/maximum settlement fund circulation problem (Min-SFC/Max-SFC) in a given graph G with debts d: Arightarrow mathbb{R}_{+}cup {0} asks to find a bijection pi:Ato {1,2,dots,|A|} that minimizes/maximizes the total funds sum _{vin V}p_{pi }(v). In this paper, we show that both Min-SFC and Max-SFC are NP-hard; in particular, Min-SFC is (I) strongly NP-hard even if G is (i) a multigraph with |V|=2 or (ii) a simple graph with treewidth at most two,and is (II) (not necessarily strongly) NP-hard for simple trees of diameter four, while it is solvable in polynomial time for stars. Also, we identify several polynomial time solvable cases for both problems