EconPapers    
Economics at your fingertips  
 

Designing public storage warehouses with high demand for revenue maximisation

Zhe Yuan, Haoxuan Xu, Yeming (Yale) Gong, Chengbin Chu and Jinlong Zhang

International Journal of Production Research, 2017, vol. 55, issue 13, 3686-3700

Abstract: The design of public storage warehouses needs to fit market segments to increase the average revenue in an environment of high demand. This paper presents a revenue model integrated with queuing and price-demand theories to solve the design and pricing problem for public storage warehouses. We consider two demand cases in the model, which are exponential demand and piecewise linear demand. We also develop a solution based on dynamic programming techniques to solve the problem. Using data from a warehouse, we conduct numerical experiments. Results show that our approach can improve the expected revenue of public storage warehouses with high demand by 16.6% on average. We further conduct sensitivity analysis on price, and investigate the relation between revenue and price.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2016.1211338 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:55:y:2017:i:13:p:3686-3700

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2016.1211338

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst (chris.longhurst@tandf.co.uk).

 
Page updated 2024-12-29
Handle: RePEc:taf:tprsxx:v:55:y:2017:i:13:p:3686-3700