The on-demand warehousing problem

Warehouses are key elements of supply chain networks, and great attention is paid to increase their efficiency. Highly volatile space requirements are enablers of innovative resource sharing concepts, where warehouse capacities are traded on online platforms. In this context, our paper introduces the on-demand warehousing problem from the perspective of platform providers. The objective prioritises demand–supply matching with maximisation of the number of transactions. If there is a tie, the secondary objective maximises the number of suppliers matched with at least one customer and the number of customers that have matches within a specific threshold with respect to the minimum achievable cost. Besides the mathematical integer programming formulation, a myopic list-based heuristic and an efficient matheuristic approach are presented and benchmarked against the performance of a commercial optimisation solver. The impact of several parameters on the platform’s objective is analysed. A particularly relevant finding is that the pricing flexibility on the demand side does not necessarily imply higher payments to the supply side. All data instances are made available publicly to encourage more researchers to work on this timely and challenging topic.