Dynamic versus constant storage pricing in supply Hub in Industrial Park (SHIP)

Xuan Qiu, Gangyan Xu, George Q. Huang

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

A Supply Hub in Industrial Park (SHIP) gains revenue from leasing space to its member enterprises in the same industrial park. How to price the storage space is one of the most important questions faced by the SHIP operator. This paper considers both dynamic and constant storage pricing strategies. Under dynamic storage pricing, price is charged based on the length of storage. A bilevel programming model is developed for determining SHIP's storage pricing under both strategies respectively. Some optimal characteristics are analyzed under constant storage pricing. A numerical study is then conducted for comparing the dynamic and constant storage pricings, and examining the influence of major parameters. The numerical results show that SHIP could achieve profit improvement through adopting the dynamic storage pricing, especially when the delivery charge of SHIP is low, or the delivery charge of PW or the holding cost rate at SHIP is high.

Original languageEnglish
Title of host publication43rd International Conference on Computers and Industrial Engineering 2013, CIE 2013
PublisherCurran Associates Inc.
Pages916-923
Number of pages8
ISBN (Print)9781629934372
Publication statusPublished - Oct 2013
Externally publishedYes
Event43rd International Conference on Computers and Industrial Engineering 2013, CIE 2013 - Hong Kong, Hong Kong
Duration: 16 Oct 201318 Oct 2013

Publication series

NameProceedings of International Conference on Computers and Industrial Engineering, CIE
Volume2
ISSN (Electronic)2164-8689

Conference

Conference43rd International Conference on Computers and Industrial Engineering 2013, CIE 2013
Country/TerritoryHong Kong
CityHong Kong
Period16/10/1318/10/13

Keywords

  • Bilevel programming
  • Industrial Park
  • Storage pricing
  • Supply hub

ASJC Scopus subject areas

  • Computer Science(all)
  • Control and Systems Engineering
  • Electrical and Electronic Engineering
  • Industrial and Manufacturing Engineering
  • Safety, Risk, Reliability and Quality

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