|
Title:
Revenue Management
Scheduled:
2008, Mini 2
Course Number:
45-830
Course Type:
Masters Program
Description:
An introduction to revenue management and dynamic pricing.
Management of the production and distribution of services and manufactured goods has traditionally focused on minimizing the cost of operations thus to a large extent neglecting the demand side of a company’s business. Revenue management originated in the deregulated airline industry around 1980 as a set of practices to manage demand for seats on commercial flights by optimizing price inventory availability and overbooking decisions. Having enjoyed great success in this industry revenue management and the associated dynamic pricing decision technologies have now evolved into a set of mature practices embedded in decision support systems routinely employed by commercial managers of business-to-consumer and business-to-business companies such as hotels rental car and railway companies fashion and apparel retailers car and computer manufactures freight and cargo carriers interstate natural gas pipelines petroleum product distributors and hospitals. This course covers models and practices to optimize the management of the demand for a company’s products or services. Topics include booking limits bid prices overbooking dynamic pricing and markdown management. Cases supplement the lectures.
|
