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Pricing and Revenue Management in the Supply Chain

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Pricing and Revenue Management in the Supply Chain
Pricing and Revenue Management in the Supply Chain

The Council of Community Colleges of Jamaica
Turks and Caicos Community College

Supply Chain Management
MGMT 4801

Lecturer: Ms. M. Hosten

Due Date: October 9th, 2012

Name: Donnell Lightbourne

Table of Content

What is Revenue Management? ………………………………………………….. pg. 3

Foundations for Strategic Management ………………………………………….. pg. 3

Impact and Conditions of RM ………………………………………………….. pg. 4

Segments of Revenue Management ………………………………………………….. pg. 5-8

Practicing Revenue Management ………………………………………………….. pg. 9

User of Revenue Management …………………………………………………... pg. 10

Bibliography …………………………………………………………………… pg. 11

What is revenue management?

Revenue management is the application of controlled analytics that anticipate consumer behavior at the micro-market level and optimize product availability and price to exploit revenue growth. It could also be defined as the use of differential pricing based on customer sector, time of use and product or capacity availability to increase supply chain surplus.

Revenue management is an order acceptance or refusal process that employ differential pricing strategy and stop sales tactic to modify capacity enhance delivery reliability and speed, and realize revenue from change order responsiveness in order to maximize revenue from pre-existing capacity. It is the use of pricing to amplify the profit generated from a limited supply of supply chain assets.

Foundations for Strategic Revenue Management
Technology
Technological advances in revenue management systems are assuming a crucial role as the regulation shifts from a tactical, to strategic one. There are systems on the market, that provide a whole host of functionalities, such as multiple channel management and competitor rate-shopping tools, that support the expanded dispatch of strategic approach


Bibliography: Articles and books ▪ Supply Chain Management, Enis Selman, Student at International Balkan University ▪ The Issue of Tactical and Strategic Revenue Management By Cheryl Hawksworth, Regional Sales Manager, IDeaS, a SAS Company ▪ The Revenue Management Strategy, The Pre=Plan Marketing Plan, Carol Verret, July 2004  ▪ Pricing and Revenue Management in the Supply Chain, By, Rasendria, September 3, 2008 ▪ Y. Narahari and S. Biswas. Supply Chain Management: Models and Decision Making ▪ Supply Chain Management 3rd Edition, Chapter 15th, 2007 Pearson Education ▪ Managing Front Office Operations 7th Edition, Chapter 13, Revenue Managment [pic] ----------------------- 4
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