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Chinese Journal of Management Science ›› 2015, Vol. 23 ›› Issue (4): 78-85.doi: 10.16381/j.cnki.issn1003-207x.2015.04.010

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A Design Model to Improve the Revenue of Third-party Warehouses with Service Constraints

XU Hao-xuan1,2, GONG Ye-ming1,2,3, YUAN Zhe1,2, ZHANG Jin-long1,2,3   

  1. 1. School of Management, Huazhong University of Science & Technology, Wuhan 430074, China;
    2. Modern Information Management Center at HUST, Wuhan 430074;
    3. Collaborative Innovation Center for Modern Logistics and Business of Hubei, Wuhan Technology and Business University, Wuhan 430065, China
  • Received:2012-08-09 Revised:2014-09-26 Online:2015-04-20 Published:2015-04-24

Abstract: As service providers, third-party warehouses mainly focus on increasing the expected revenue, but at the same time have to meet certain service standards. In a high demand environment, a stochastic design model based on queuing theory and taken into account of service constraint is preserted. The objective of the model is to maximize the expected long-run revenue. The problem is solved by dynamic programming and numerical experiments are conducted by using real data in a third-party warehouse. Finally, the results show that the new design in our method can improve the expected revenue of public storage warehouses with high demand and service constraints rate. Based on the result, the feasible and effective ranges of the service factor for decision-makers are further identified.

Key words: facility design and planning, warehouse management, third-party warehouse, service constraint

CLC Number: