Our experiments show a proper facility design can significantly improve the expected revenue of public storage warehouses.ĭeregulation has opened up many opportunities and challenges in the transportation industry-opportunities to increase profits and challenges to keep from being outflanked by competition.
We then present closed-form analytic expressions for pick rates of order picking bucket brigades systems in different storage profiles, and show how to combine storage policies and bucket brigades protocols to improve order picking productivity.įinally, we propose a new warehouse design approach oriented to improving revenue management of public storage warehouses. We build models to describe and analyze such systems via stochastic polling theory, find closed-form expressions for the order line waiting times, and apply polling-based picking to online retailers. Secondly, we research a polling-based dynamic order picking system for online retailers. We employ a sample path optimization and perturbation analysis algorithm to search the optimal batch size for a warehousing service provider, and a central finite difference algorithm to search the optimal batch sizes from the perspectives of customers and total systems. After an overview of stochastic research in warehouse operations, we explore the following topics.įirstly, we search optimal batch sizes in a parallel-aisle warehouse with online order arrivals.
This thesis has studied stochastic models and analysis of warehouse operations. Finally, we show that the upscaling policy without reservation generally outperforms the upscaling policy with 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. 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.
Customers that cannot be accommodated with a space size of their choice can be either rejected or upscaled to a larger space. A major question is how to design self-storage facilities to fit market segments and accommodate volatile demand to maximize revenue. The design of self-storage warehouses differs from other facility designs in its focus on revenue maximization. Both private customers and companies can rent temporary space from such facilities.
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