Pricing and Revenue Management - Pearson Always Learning定价和收益管理-皮尔森一直在学习.ppt

Supply Chain Management_Janat Shah Copyright? 2009 Dorling Kindersley India Pvt Ltd Supply Chain Management_Janat Shah Copyright? 2009 Dorling Kindersley India Pvt Ltd Pricing and Revenue Management 12 Learning Objectives What is revenue management? Why do firms offer differential prices to different market segments? What are the conditions under which revenue management can be practised in an effective way? How do firms make optimal pricing decision in the context of revenue management? Why does the fashion industry offer markdown pricing during the end of the season? Revenue Management The traditional approach involves hierarchical decision making Marketing function makes decisions on pricing and other marketing variables and supply chain function makes relevant supply chain decisions . In limited supply situation , it is important to make integrated decisions where pricing decisions in particular and overall marketing decisions in general should factor in limited supply availability. Supply is limited by the available capacity in perishable products or service situations. Since one can not store perishable products and services, the capacity of plane or a hotel or a truck restricts the supply position in these businesses. Supply is limited by available inventory in long lead time supply situations. The ability to handle demand is constrained by the fact that the supplier needs a long lead-time and, within that period the firm has to manage with the inventory available at hand. Under conditions of limited supply, the bulk of the capacity and supply-related costs have already been incurred and consequently revenue management attempts to make optimal pricing decision so that the firm can generate the highest possible revenue so as to generate the highest possible profit. Optimal Pricing Decision: Single Customer segment Linear demand curve D= a- b p D= demand and p = price and a b are parameters of demand curve Pricing : N