Designing Self-Storage Warehouses with Customer Choice

Shuyu Zhou, Yeming Gong () and René de Koster
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Shuyu Zhou: Erasmus University Rotterdam
Yeming Gong: EM - EMLyon Business School
René de Koster: Erasmus University Rotterdam

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Abstract: Self-storage warehousing is a rapidly growing industry where consumers or companies can rent storage space for personal or company use, over a certain horizon. This paper addresses the question of how to design the facilities so that revenue can be maximized over a nite horizon, considering multiple demand requirements with respect to size, pricing, location within the facility, climate control, security, or outside access, among others. Using a customer choice model to specify the probability of purchase for each fare product as a function of the set of fare products offered, we propose methods to design self-storage warehouses while allowing different customer choice behaviors. We model the problem as a mixed-integer program and solve it using column generation and branch-and-price algorithms. In addition, we study the impact of re-layout and methods to modify facility layout, since self-storage facilities are relatively fexible in layout and individual storage compartments can be adapted to changes in demand. We validate our model using the data of four self-storage warehouses, and show our method can improve the expected revenue by nearly 11% on average for these cases.

Keywords: facilities planning and design; warehouse management; customer choice; facilities layout; self-storage (search for similar items in EconPapers)
Date: 2016-05-01
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Citations: View citations in EconPapers (3)

Published in International Journal of Production Research, 2016, 54 (10), 3080-3104 p. ⟨10.1080/00207543.2016.1158880⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02313369

DOI: 10.1080/00207543.2016.1158880

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