Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:
A) yield management.
B) profit minimization.
C) capacity loading.
D) demand optimization.
E) perishability avoidance.

Question

Quizplus · Accepted Answer

Yield management involves using dynamic pricing to adjust prices based on changes in demand and capacity. The goal is to maximize revenue and profitability by selling the right product at the right time and price, while avoiding waste of perishable inventory. This approach is widely used in industries such as airlines, hotels, and restaurants where capacity and demand are variable and perishable goods are involved.

Using Dynamic Pricing in Response to Capacity Variability to Ensure