1. Increasing the Revenue of Self-Storage Warehouses by Facility Design
- Author
-
Yeming Yale Gong, René de Koster, J. B. G. Hans Frenk, Adriana F. Gabor, emlyon business school, business school, emlyon, Department of Management of Technology and Innovation, and Econometrics
- Subjects
021103 operations research ,Operations research ,Computer science ,Warehouse management ,05 social sciences ,0211 other engineering and technologies ,Reservation ,Q Science (General) ,02 engineering and technology ,Management Science and Operations Research ,Space (commercial competition) ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Industrial and Manufacturing Engineering ,Warehouse ,Market segmentation ,Management of Technology and Innovation ,0502 economics and business ,Revenue ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,Operations management ,Revenue maximization ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,[SHS.GESTION] Humanities and Social Sciences/Business administration ,050203 business & management - Abstract
International audience; Self-storage is a booming industry. Both private customers and companies can rent temporary space from such facilities. The design of self-storage warehouses differs from other facility designs in its focus on revenue maximization. A major question is how to design self-storage facilities to fit market segments and accommodate volatile demand to maximize revenue. Customers that cannot be accommodated with a space size of their choice can be either rejected or upscaled to a larger space. Based on data of 54 warehouses in America, Europe, and Asia, we propose a new facility design approach with models for three different cases: an overflow customer rejection model and two models with customer upscale possibilities, one with reservation and another without reservation. We solve the models for several real warehouse cases, and our results show that the existing self-storage warehouses can be redesigned to generate larger revenues for all cases. Finally, we show that the upscaling policy without reservation generally outperforms the upscaling policy with reservation.
- Published
- 2013