A Robust Optimization of Capacity Allocation Policies in the Third-Party Warehouse

Abstract EN

We study the capacity allocation policies of a third-party warehouse center, which suppliesseveral different level services on different prices with fixed capacity, on revenue managementperspective.

For the single period situation, we use three different robust methods, absoluterobust, deviation robust, and relative robust method, to maximize the whole revenue.

Then we give somenumerical examples to verify the practical applicability.

For the multiperiod situation, as thedemand is uncertain, we propose a stochastic model for the multiperiod revenue managementproblem of the warehouse.

A novel robust optimization technique is applied in this model tomaximize the whole revenue.

Then we give some numerical examples to verify the practicalapplicability of our method.