Article ID: | iaor20071893 |
Country: | United Kingdom |
Volume: | 57 |
Issue: | 4 |
Start Page Number: | 377 |
End Page Number: | 388 |
Publication Date: | Apr 2006 |
Journal: | Journal of the Operational Research Society |
Authors: | Bell P.C., Zhang M. |
Keywords: | yield management |
Management of the firm implementing revenue management has many decisions to make regarding the details of the implementation. In this article we examine seven different decisions surrounding the implementation of aggressive ‘revenue management’ pricing in the context of a firm facing a single period stochastic pricing and stocking problem. We demonstrate through use of an example, that some of the decisions have a large financial impact, while other options that require considerable computational work to implement may provide little financial impact.