Abstract
Fast growth of public storage, a considerable and booming industry, brings challenges to design public storage facilities fitting market segments to maximize revenue. Customer choice behavior, such as buy-up and buy-down, is an important element in revenue management of public storage warehouses. To consider this behavior, the customer choice model is used to specify the probability of purchase for each fare product as a function of the set of fare products offered. This paper proposes models and solving algorithms to design public storage warehouses with considering the choice behavior of customers. We consider two application settings: (1) For the problems without the re-layout within examining horizon, we solve it by mixed integer programming. (2)For the problems with re-layout, we solve it mainly by column generation algorithms.