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Mathematical Problems in Engineering
Volume 2015, Article ID 810798, 10 pages
http://dx.doi.org/10.1155/2015/810798
Research Article

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

1School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
2School of Business, Hubei University, Wuhan 430062, China

Received 10 October 2014; Accepted 15 January 2015

Academic Editor: John Gunnar Carlsson

Copyright © 2015 Xu Xian-hao et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We study the capacity allocation policies of a third-party warehouse center, which supplies several different level services on different prices with fixed capacity, on revenue management perspective. For the single period situation, we use three different robust methods, absolute robust, deviation robust, and relative robust method, to maximize the whole revenue. Then we give some numerical examples to verify the practical applicability. For the multiperiod situation, as the demand is uncertain, we propose a stochastic model for the multiperiod revenue management problem of the warehouse. A novel robust optimization technique is applied in this model to maximize the whole revenue. Then we give some numerical examples to verify the practical applicability of our method.