COMMERCE 2OC3 Lecture Notes - Lecture 25: Integer Programming, Car Rental, Overselling
16 Apr 2018
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The planning process of allocating scarce resources to customers to maximize revenue. Modern airline companies would not be able to operate without revenue management techniques. American airlines: 1. 8 billion revenue since its implementation (smith et. Revenue management has contributed millions to the bottom line, and it has educated our people to manage their business more effectively; when you focus on the bottom line, your company grows. Firms always had to make decisions on quantities and prices. Scientific advances in economics, statistics, computer science, and operations management allow for more accurate and practical models operations management allow for more accurate and practical models. Analytics and big data: we can now store and analyze vast amounts of data. Some of these techniques are still quite old. You manage a hotel with 200 rooms in hamilton. Some guests book in advance to get a bargain rate. Other guests book in the last minute and pay the premium rate.
