Revenue or Yield Management may also be thought of as:
A)The process of trying to manage the entire production based on the expected revenue
B)The attempt to allocate the fixed capacity of the service to match the highest revenue demand in the marketplace
C)The notion that revenue can be generated though managing only a certain set of operations
D)Trying to get a fixed source of revenue for the organization

Question

Quizplus · Accepted Answer

Revenue or Yield Management involves allocating the fixed capacity of a service (such as hotel rooms or airline seats) to match the highest revenue demand in the marketplace. It is a technique used to optimize revenue by pricing the product at the right time and for the right customer. Option A is incorrect as Revenue Management does not manage the entire production process, but rather focuses on pricing and availability of products or services. Option C is incorrect as Revenue Management is not limited to a certain set of operations, but rather is a holistic approach to pricing and yield optimization. Option D is incorrect as the objective of Revenue Management is not to get a fixed source of revenue, but rather to optimize revenue within the constraints of fixed capacity.

Revenue or Yield Management May Also Be Thought of As