供應(yīng)鏈管理英文課件：Ch15 Pricing and Revenue Management

Chapter15

PricingandRevenueManagementintheSupplyChainSupplyChainManagement

(3rdEdition)

1-1Chapter15

PricingandRevenueOutlineTheRoleofRevenueManagementinthe

SupplyChainRevenueManagementforMultipleCustomerSegmentsRevenueManagementforPerishableAssetsRevenueManagementforSeasonableDemandRevenueManagementforBulkandSpotCustomersUsingRevenueManagementinPracticeSummaryofLearningObjectives2OutlineTheRoleofRevenueManWhatisRevenueManagement?RevenuemanagementisthepracticeofdifferentialpricingtoincreasesupplychainprofitsAstrategythatadjustspricesbasedonproductavailability,customerdemand,andremainingdurationofthesalesseasonwillresultinhighersupplychainprofitsRevenuemanagement,alsocalledyieldmanagement,andsometimessmartpricing,isatechniquetooptimizerevenuefromafixed,butperishableinventory3WhatisRevenueManagement?RevRevenueManagementNewsvendorproblem:

MapsdemandintocapacityRevenueManagement:

Mapscapacityintodemand4RevenueManagementNewsvendorpWhatisRevenueManagement?Isrevenuemanagementpossiblefor…AirlineticketsCruisetravelRestaurantsHospitalsLTLtruckingcompaniesApartmentrentalIncomingMBAclassVendingmachines5WhatisRevenueManagement?IsRevenueManagementandVendingMachinesCoca-Colaannouncesthatitisconsideringvendingmachinesthatwillboostpricesduringhotweather.“Coca-Colaisaproductwhoseutilityvariesfrommomenttomoment.Inafinalsummerchampionship,whenpeoplemeetinastadiumtoenjoythemselves,theutilityofachilledCoca-Colaisveryhigh.Soitisfairitshouldbemoreexpensive.Themachinewillsimplymakethisprocessautomatic.”DouglasIvester,ChairmanandCEO6RevenueManagementandVendingConditionsforRevenueManagementThevalueoftheproductvariesindifferentmarketsegmentsAirlineseats:leisureversusbusinesstravelTheproductishighlyperishableorproductwasteoccursFashionandseasonalapparelHightechproductsDemandhasseasonal

andotherpeaksCruisetravelTheproductissoldbothinbulkandonthespotmarket

Ownerofwarehousewhocandecidewhethertoleasetheentirewarehousethroughlong-termcontractsorsaveaportionofthewarehouseforuseinthespotmarket7ConditionsforRevenueManagemWhyRevenueManagement?SuccessstoriesAmericanAirlinesincreasedannualrevenuebyover$1billionthroughrevenuemanagementMarriotthotelsincreasedannualrevenuewith$100millionthroughrevenuemanagementNationalCarRentalwassavedfromliquidationthroughrevenuemanagementCanadianBroadcastingCorporationincreasedrevenuewith$1millionperweek8WhyRevenueManagement?SuccessAirfareexamplep10001000800600400200q800600400200Choosethefarethatmaximizesthearea(revenue)oftherectangle9Airfareexamplep10001000800600Airfareexample10001000800600400200800600400200Choosethefarethatmaximizesthearea(revenue)oftherectangleMaximumrevenue

=500*500

=$250,000Consumer

surplusUnaccommodated

demandpq10Airfareexample100010008006004Airfareexample10001000800600400200800600400200ChoosethefarethatmaximizestheSUMofareasoftherectanglesEconomyclassBusinessclassMaximumrevenue

=333*(333+667)=$333,000pq11Airfareexample100010008006004Airfareexample10001000800600400200800600400200ChoosethefarethatmaximizestheSUMofareasoftherectanglesEconomyclassEconomyplusclassFirstclassMaximumrevenue

=200*(800+600+400+200)

=$400,000Businessclasspq12Airfareexample100010008006004Airfareexample10001000800600400200800600400200Maximumrevenue

=$500,000PerfectpricediscriminationChargingadifferentpricetoadifferentbuyerforthesameproductwithoutanytruecostdifferentialtojustifythedifferentpricepq13Airfareexample100010008006004IsRevenueManagementPriceDiscrimination?Thesameproductsoldatdifferenttimesfordifferentpricesisnotnecessarilypricediscrimination,becauseatdifferenttimes...TheproductionordistributioncostsmaybedifferentInventorycostswereincurredtokeeptheproductinstockuntilalatertimeConsumersvalueproductsdifferentlyatdifferentpointsintimeTheproductvaluemaychangeovertime,suchasperishableormaturingorseasonalproducts,fashiongoods,antiques.InterestisearnedifproductissoldatanearliertimeLockingsalesinearlyreducesuncertainty14IsRevenueManagementPriceDiRevenueManagementforMultipleCustomerSegmentsIfasupplierservesmultiplecustomersegmentswithafixedasset,thesuppliercanimproverevenuesbysettingdifferentpricesforeachsegmentWhatpricetochargeeachsegment?Howtoallocatelimitedcapacityamongthesegments?Pricesmustbesetwithbarrierssuchthatthesegmentwillingtopaymoreisnotabletopaythelowerprice15RevenueManagementforMultiplRevenueManagementHotels,airlines,operahouseshopethistoolwillhelpthemmaximizesalesandprofits“Therealbeneficiaryofrevenuemanagementhasbeentheconsumer”Clearly,customersforwhichrevenuemanagementhasdecreasedthecostofairtravel,havebenefitedfromrevenuemanagement.Couldcustomersforwhichrevenuemanagementhasincreasedthecostofairtravel,alsohavebenefitedfromrevenuemanagement?16RevenueManagementHotels,airlWhatisRevenueManagement?p10001000800600400200800600400200qp10001000800600400200800600400200q17WhatisRevenueManagement?p10Example15-1:PricingtomultiplesegmentsAcontractmanufacturerhasidentifiedtwocustomerssegmentsforitsproductioncapacity—onewillingtoplaceanordermorethanoneweekinadvanceandtheotherwillingtopayahigherpriceaslongasitcanprovidelessthanaweek’snoticeforproduction.Thecustomersthatareunwillingtocommitinadvancearelesspricesensitiveandhaveademandcurved1=5,000–20p1.Customerswillingtocommitinadvancearemorepricesensitiveandhaveademandcurveofd2=5,000–40p2.Productioncostisc=$10perunit.Whatpriceshouldthecontractmanufacturerchargeeachsegmentifitsgoalistomaximizeprofits?18Example15-1:PricingtomultiExample15-1:Pricingtomultiplesegmentsd1=5,000–20p1c=1019Example15-1:PricingtomultiExample15-1:Pricingtomultiplesegmentsd1=5,000–20p1c=10Profitp-c20Example15-1:PricingtomultiPricingMultipleSegmentsAssumethatthedemandcurveforsegmentiisgivenbydi=Ai–BipiThegoalofthesupplieristopricesoastomaximizeprofitsMax(pi–c)(Ai–Bipi)Profit21PricingMultipleSegmentsAssumPricingMultipleSegmentsTheoptimalpriceforsegmentiisgivenbypi=Ai/2Bi+c/222PricingMultipleSegmentsTheoExample15-1:PricingtomultiplesegmentsForsegment1:pi=Ai/2Bi+c/2 pi=5,000/(2*20)+10/2

=$130Profit (pi–10)(5,000–20pi) =(130–10)(5,000–20*130)

=$288,000Forsegment2:pi=Ai/2Bi+c/2 pi=5,000/(2*40)+10/2

=$67.50Profit (pi–10)(5,000–40pi)

=(67.5–10)(5,000–40*67.5)

=$127,650Totalprofit$415,65023Example15-1:PricingtomultiExample15-1:PricingtomultiplesegmentsIftotalcapacityislimitedto4,000units,whatshouldthecontractmanufacturerchargeeachsegment?Forsegment1:p1=$130Demandd1=(5,000–20p1)=2,400Forsegment2:p2=$67.50Demandd2=(5,000–40p2)=2,300Totaldemand=2,400+2,300=4,700Totaldemandexceedsproductioncapacityof4,00024Example15-1:PricingtomultiPricingMultipleSegmentsThegoalofthesupplieristopricesoastomaximizeprofitsMax∑ki=1(pi–c)(Ai–Bipi)Subjectto:

∑ki=1(Ai–Bipi)Q

pi0MaximizeprofitsProductioncapacityPrice25PricingMultipleSegmentsThegExample15-1:PricingtomultiplesegmentsIfthecontractmanufacturerweretochargeasinglepriceoverbothsegments,whatshoulditbe?d1=5,000–20p1d2=5,000–40p2d=(5,000–20p)+(5,000–40p)=10,000–60p26Example15-1:PricingtomultiExample15-1:PricingtomultiplesegmentsForsegment1and2:p=Ai/2Bi+c/2 p=10,000/(2*60)+10/2

=$83.33Max(p–c)(A–Bp) Max(p–10)(10,000–60p) =(83.33–10)(10,000–60*83.33)

=$366,650Differentialpricingraisesprofit

from$366,650to$415,65027Example15-1:PricingtomultiRevenueManagementforMultipleCustomerSegmentsIfasupplierservesmultiplecustomersegmentswithafixedasset,thesuppliercanimproverevenuesbysettingdifferentpricesforeachsegmentWhatpricetochargeeachsegment?Howtoallocatelimitedcapacityamongthesegments?Whatifdemandisuncertain?28RevenueManagementforMultiplTheParkHyattPhiladelphia118King/Queenrooms.HyattoffersapL=$128(lowfare)targetingleisuretravelers.RegularfareispH=$181(highfare)targetingbusinesstravelers.Demandforlowfareroomsisabundant.LetDHbeuncertaindemandforhighfarerooms.Assumedemandforthehighfare(business)occursonlywithinafewdaysoftheactualstayHowmuchcapacityshouldHyattsaveforthehigherpricedsegment?29TheParkHyattPhiladelphia118AllocatingCapacitytoaSegmentUnderUncertaintyBasictradeoffbetweencommittingtoanorderfromalower-pricebuyerorwaitingforahigh-pricebuyertoarrivelateronSpoilage

occurswhenthecapacityreservedforhigher-pricebuyersiswastedbecausedemandfromthehigher-pricesegmentdoesnotmaterialize

Spilloccursifhigher-pricebuyershavetobeturnedawaybecausethecapacityhasalreadybeencommittedtolower-pricebuyers30AllocatingCapacitytoaSegmeAllocatingCapacitytoaSegmentUnderUncertaintyExpectedrevenue=salesprobabilityx

salesprice

Neversellaunitofcapacityforlessthantheexpectedrevenue$128$181.00=1.0x181$128$162.90=0.9x181$128$144.80=0.8x181$128

$126.70=0.7x18131AllocatingCapacitytoaSegmeAllocatingCapacitytoaSegmentUnderUncertaintyRH(CH)=Prob(demandfromhigher-pricesegment>CH)xpHExpectedrevenue=salesprobabilityxsalespriceNeversellaunitofcapacityforlessthantheexpectedrevenue$126.70=0.7x18132AllocatingCapacitytoaSegmeAllocatingCapacitytoaSegmentUnderUncertaintyRH(CH)=Prob(demandfromhigher-pricesegment>CH)xpHpL=Prob(demandfromhigher-pricesegment>CH)xpHProb(demandfromhigher-pricesegment>CH)=pL/pHExpectedrevenue=salesprobabilityxsalespriceNeversellaunitofcapacityforlessthantheexpectedrevenue$128

$126.70=0.7x18133AllocatingCapacitytoaSegmeAllocatingCapacitytoaSegmentUnderUncertaintyProb(demandfromhigher-pricesegment>CH)=pL/pHCH=F-1(1–pL/pH,DH,H)Prob(demandfromhigher-pricesegmentCH)=1–pL/pHProbCH

pL/pH1–pL/pH34AllocatingCapacitytoaSegmeExample:AllocatingCapacitytoaSegmentUnderUncertaintyAssumethatdemandforroomsatthehighrateisnormallydistributedwithmean102andstandarddeviation20.8.Alsoassumethatthehighrateis181dollarsandlowrate(discountrate)is128dollarsDetermineprobabilitythatexpectedmarginalrevenueofhigherrateclasswillexceedmarginalrevenueoflowerrateclasspL=128pH=1811–pL/pH=1–128/181=0.2928ConvertthatprobabilityintothenumberofroomsNORMINV(1–pL/pH,DH,H)=NORMINV(0.2928,102,20.8)=91Hence,91roomsshouldbereservedforthehighrateclass35Example:AllocatingCapacitytExample15-2AllocatingCapacitytoMultipleSegmentsToFromTruckingservestwocustomersegments.Onesegment(A)iswillingtopay$3.50percubicfeetbutwantstocommitwithonly24hoursnotice.Theothersegment(B)iswillingtopayonly$2.00,butiswillingtocommittoashipmentwithuptooneweeknotice.Withtwoweekstogo,demandforsegmentAisforecasttobenormallydistributed,withameanof3,000cubicfeetandastandarddeviationof1,000.HowmuchoftheavailablecapacityshouldbereservedforsegmentA?36Example15-2AllocatingCapaciExample15-2AllocatingCapacitytoMultipleSegmentsRevenuefromsegmentApA=$3.50RevenuefromsegmentBpB=$2.00MeandemandforsegmentADA=3,000StandarddeviationofdemandforsegmentAA=1,000CapacitytobereservedforsegmentACA=F-1(1–pB/pA,DH,H)=

F-1(0.4286,3000,1000)=

2,82037Example15-2AllocatingCapaciExample15-2AllocatingCapacitytoMultipleSegmentsToFromTruckingservestwocustomersegments.Onesegment(A)iswillingtopay$3.50percubicfeetbutwantstocommitwithonly24hoursnotice.Theothersegment(B)iswillingtopayonly$2.00,butiswillingtocommittoashipmentwithuptooneweeknotice.Withtwoweekstogo,demandforsegmentAisforecasttobenormallydistributed,withameanof3,000cubicfeetandastandarddeviationof1,000.HowmuchoftheavailablecapacityshouldbereservedforsegmentA?HowshouldToFromchangeitdecisionifsegmentAiswillingtopay$5percubicfoot?38Example15-2AllocatingCapaciExample15-2AllocatingCapacitytoMultipleSegmentsRevenuefromsegmentApA=$5.00RevenuefromsegmentBpB=$2.00MeandemandforsegmentADA=3,000StandarddeviationofdemandforsegmentAA=1,000CapacitytobereservedforsegmentACA=F-1(1–pB/pA,DH,H)=

F-1(0.6,3000,1000)=

3,25339Example15-2AllocatingCapaciRevenueManagement

forPerishableAssetsAnyassetthatlosesvalueovertimeisperishableExamples:high-techproductssuchascomputersandcellphones,highfashionapparel,underutilizedcapacity,fruitsandvegetablesTwobasicapproaches:VarypriceovertimetomaximizeexpectedrevenueOverbooksalesoftheassettoaccountforcancellations40RevenueManagement

forPerishaRevenueManagement

forPerishableAssetsOverbookingoroversellingofasupplychainassetisvaluableifordercancellationsoccurandtheassetisperishableThelevelofoverbookingisbasedonthetrade-offbetweenthecostofwastingtheassetiftoomanycancellationsleadtounusedassetsandthecostofarrangingabackupiftoofewcancellationsleadtocommittedordersbeinglargerthantheavailablecapacity41RevenueManagement

forPerishaRevenueManagement

forPerishableAssetsp=priceatwhicheachunitoftheassetissoldc=costofusingorproducingeachunitoftheassetb=costperunitatwhichabackupcanbeusedinthecaseofassetshortageCw=p–c=marginalcostofwastedcapacityCs=b–c=marginalcostofacapacityshortageO*=optimaloverbookinglevels*=Probability(cancellations<

O*)=Cw/(Cw+Cs)42RevenueManagement

forPerishaRevenueManagement

forPerishableAssets Ifthedistributionofcancellationsisknowntobenormalwithmeanmcandstandarddeviationscthen O*=F-1(s*,mc,sc)=NORMINV(s*,mc,sc) Ifthedistributionofcancellationsisknownonlyasafunctionofthebookinglevel(capacityL+overbookingO)tohaveameanofm(L+O)andstddeviationofs(L+O),theoptimaloverbookinglevelisthesolutiontothefollowingequation: O=F-1(s*,m(L+O),s(L+O)) =NORMINV(s*,m(L+O),s(L+O))43RevenueManagement

forPerishaExample15.5Costofwastedcapacity=Cw=$10perdressCostofcapacityshortage=Cs=$5perdresss*=Cw/(Cw+Cs)=10/(10+5)=0.667mc=800;sc=400O* =NORMINV(s*,mc,sc) =NORMINV(0.667,800,400)=973Ifthemeanis15%ofthebookinglevelandthecoefficientofvariationis0.5,thentheoptimaloverbookinglevelisthesolutionofthefollowingequation:O=NORMINV(0.667,0.15(5000+O),0.075(5000+O))UsingExcelSolver,O*=1,11544Example15.5CostofwastedcapRevenueManagement

forSeasonalDemandSeasonalpeaksofdemandarecommoninmanysupplychainsExamples:MostretailersachievealargeportionoftotalannualdemandinDecember(A)Off-peakdiscountingcanshiftdemandfrompeaktonon-peakperiodsChargehigherpriceduringpeakperiodsandalowerpriceduringoff-peakperiods45RevenueManagement

forSeasonaRevenueManagementfor

BulkandSpotCustomersMostconsumersofproduction,warehousing,andtransportationassetsinasupplychainfacetheproblemofconstructingaportfoliooflong-termbulkcontractsandshort-termspotmarketcontractsThebasicdecisionisthesizeofthebulkcontractThefundamentaltrade-offisbetweenwastingaportionofthelow-costbulkcontractandpayingmorefortheassetonthespotmarketGiventhatboththespotmarketpriceandthepurchaser’sneedfortheassetareuncertain,adecisiontreeapproachasdiscussedinChapter6shouldbeusedtoevaluatetheamountoflong-termbulkcontracttosign46RevenueManagementfor

BulkanRevenueManagementfor

BulkandSpotCustomersForthesimplecasewherethespotmarketpriceisknownbutdemandisuncertain,aformulacanbeusedcB=bulkratecS=spotmarketpriceQ*=optimalamountoftheassettobepurchasedinbulkp*=probabilitythatthedemandfortheassetdoesnotexceedQ*MarginalcostofpurchasinganotherunitinbulkiscB.Theexpectedmarginalcostofnotpurchasinganotherunitinbulkandthenpurchasingitinthespotmarketis(1-p*)cS.47RevenueManagementfor

BulkanRevenueManagementfor

BulkandSpotCustomersIftheoptimalamountoftheassetispurchasedinbulk,themarginalcostofthebulkpurchaseshouldequaltheexpectedmarginalcostofthespotmarketpurchase,orcB=(1-p*)cS

Solvingforp*yieldsp*=(cS–cB)/cSIfdemandisnormalwithmeanmandstddeviations,theoptimalamountQ*tobepurchasedinbulkisQ*=F-1(p*,m,s)=NORMINV(p*,m,s)48RevenueManagementfor

BulkanExample15.6Bulkcontractcost=cB=$10,000permillionunitsSpotmarketcost=cS=$12,500permillionunitsm=10millionunitss=4millionunitsp*=(cS–cB)/cS=(12,500–10,000)/12,500=0.2Q*=NORMINV(p*,m,s)=NORMINV(0.2,10,4)=6.63Themanufacturershouldsignalong-termbulkcontractfor6.63millionunitspermonthandpurchaseanytransportationcapacitybeyondthatonthespotmarket49Example15.6BulkcontractcostSummaryofLearningObjectivesWhatistheroleofrevenuemanagementinasupplychain?Underwhatconditionsarerevenuemanagementtacticseffective?Whatarethetrade-offsthatmustbeconsideredwhenmakingrevenuemanagementdecisions?50SummaryofLearningObjectivesChapter15

PricingandRevenueManagementintheSupplyChainSupplyChainManagement

(3rdEdition)

1-51Chapter15

PricingandRevenueOutlineTheRoleofRevenueManagementinthe

SupplyChainRevenueManagementforMultipleCustomerSegmentsRevenueManagementforPerishableAssetsRevenueManagementforSeasonableDemandRevenueManagementforBulkandSpotCustomersUsingRevenueManagementinPracticeSummaryofLearningObjectives52OutlineTheRoleofRevenueManWhatisRevenueManagement?RevenuemanagementisthepracticeofdifferentialpricingtoincreasesupplychainprofitsAstrategythatadjustspricesbasedonproductavailability,customerdemand,andremainingdurationofthesalesseasonwillresultinhighersupplychainprofitsRevenuemanagement,alsocalledyieldmanagement,andsometimessmartpricing,isatechniquetooptimizerevenuefromafixed,butperishableinventory53WhatisRevenueManagement?RevRevenueManagementNewsvendorproblem:

MapsdemandintocapacityRevenueManagement:

Mapscapacityintodemand54RevenueManagementNewsvendorpWhatisRevenueManagement?Isrevenuemanagementpossiblefor…AirlineticketsCruisetravelRestaurantsHospitalsLTLtruckingcompaniesApartmentrentalIncomingMBAclassVendingmachines55WhatisRevenueManagement?IsRevenueManagementandVendingMachinesCoca-Colaannouncesthatitisconsideringvendingmachinesthatwillboostpricesduringhotweather.“Coca-Colaisaproductwhoseutilityvariesfrommomenttomoment.Inafinalsummerchampionship,whenpeoplemeetinastadiumtoenjoythemselves,theutilityofachilledCoca-Colaisveryhigh.Soitisfairitshouldbemoreexpensive.Themachinewillsimplymakethisprocessautomatic.”DouglasIvester,ChairmanandCEO56RevenueManagementandVendingConditionsforRevenueManagementThevalueoftheproductvariesindifferentmarketsegmentsAirlineseats:leisureversusbusinesstravelTheproductishighlyperishableorproductwasteoccursFashionandseasonalapparelHightechproductsDemandhasseasonal

andotherpeaksCruisetravelTheproductissoldbothinbulkandonthespotmarket

Ownerofwarehousewhocandecidewhethertoleasetheentirewarehousethroughlong-termcontractsorsaveaportionofthewarehouseforuseinthespotmarket57ConditionsforRevenueManagemWhyRevenueManagement?SuccessstoriesAmericanAirlinesincreasedannualrevenuebyover$1billionthroughrevenuemanagementMarriotthotelsincreasedannualrevenuewith$100millionthroughrevenuemanagementNationalCarRentalwassavedfromliquidationthroughrevenuemanagementCanadianBroadcastingCorporationincreasedrevenuewith$1millionperweek58WhyRevenueManagement?SuccessAirfareexamplep10001000800600400200q800600400200Choosethefarethatmaximizesthearea(revenue)oftherectangle59Airfareexamplep10001000800600Airfareexample10001000800600400200800600400200Choosethefarethatmaximizesthearea(revenue)oftherectangleMaximumrevenue

=500*500

=$250,000Consumer

surplusUnaccommodated

demandpq60Airfareexample100010008006004Airfareexample10001000800600400200800600400200ChoosethefarethatmaximizestheSUMofareasoftherectanglesEconomyclassBusinessclassMaximumrevenue

=333*(333+667)=$333,000pq61Airfareexample100010008006004Airfareexample10001000800600400200800600400200ChoosethefarethatmaximizestheSUMofareasoftherectanglesEconomyclassEconomyplusclassFirstclassMaximumrevenue

=200*(800+600+400+200)

=$400,000Businessclasspq62Airfareexample100010008006004Airfareexample10001000800600400200800600400200Maximumrevenue

=$500,000PerfectpricediscriminationChargingadifferentpricetoadifferentbuyerforthesameproductwithoutanytruecostdifferentialtojustifythedifferentpricepq63Airfareexample100010008006004IsRevenueManagementPriceDiscrimination?Thesameproductsoldatdifferenttimesfordifferentpricesisnotnecessarilypricediscrimination,becauseatdifferenttimes...TheproductionordistributioncostsmaybedifferentInventorycostswereincurredtokeeptheproductinstockuntilalatertimeConsumersvalueproductsdifferentlyatdifferentpointsintimeTheproductvaluemaychangeovertime,suchasperishableormaturingorseasonalproducts,fashiongoods,antiques.InterestisearnedifproductissoldatanearliertimeLockingsalesinearlyreducesuncertainty64IsRevenueManagementPriceDiRevenueManagementforMultipleCustomerSegmentsIfasupplierservesmultiplecustomersegmentswithafixedasset,thesuppliercanimproverevenuesbysettingdifferentpricesforeachsegmentWhatpricetochargeeachsegment?Howtoallocatelimitedcapacityamongthesegments?Pricesmustbesetwithbarrierssuchthatthesegmentwillingtopaymoreisnotabletopaythelowerprice65RevenueManagementforMultiplRevenueManagementHotels,airlines,operahouseshopethistoolwillhelpthemmaximizesalesandprofits“Therealbeneficiaryofrevenuemanagementhasbeentheconsumer”Clearly,customersforwhichrevenuemanagementhasdecreasedthecostofairtravel,havebenefitedfromrevenuemanagement.Couldcustomersforwhichrevenuemanagementhasincreasedthecostofairtravel,alsohavebenefitedfromrevenuemanagement?66RevenueManagementHotels,airlWhatisRevenueManagement?p10001000800600400200800600400200qp10001000800600400200800600400200q67WhatisRevenueManagement?p10Example15-1:PricingtomultiplesegmentsAcontractmanufacturerhasidentifiedtwocustomerssegmentsforitsproductioncapacity—onewillingtoplaceanordermorethanoneweekinadvanceandtheotherwillingtopayahigherpriceaslongasitcanprovidelessthanaweek’snoticeforproduction.Thecustomersthatareunwillingtocommitinadvancearelesspricesensitiveandhaveademandcurved1=5,000–20p1.Customerswillingtocommitinadvancearemorepricesensitiveandhaveademandcurveofd2=5,000–40p2.Productioncostisc=$10perunit.Whatpriceshouldthecontractmanufacturerchargeeachsegmentifitsgoalistomaximizeprofits?68Example15-1:PricingtomultiExample15-1:Pricingtomultiplesegmentsd1=5,000–20p1c=1069Example15-1:PricingtomultiExample15-1:Pricingtomultiplesegmentsd1=5,000–20p1c=10Profitp-c70Example15-1:PricingtomultiPricingMultipleSegmentsAssumethatthedemandcurveforsegmentiisgivenbydi=Ai–BipiThegoalofthesupplieristopricesoastomaximizeprofitsMax(pi–c)(Ai–Bipi)Profit71PricingMultipleSegmentsAssumPricingMultipleSegmentsTheoptimalpriceforsegmentiisgivenbypi=Ai/2Bi+c/272PricingMultipleSegmentsTheoExample15-1:PricingtomultiplesegmentsForsegment1:pi=Ai/2Bi+c/2 pi=5,000/(2*20)+10/2

=$130Profit (pi–10)(5,000–20pi) =(130–10)(5,000–20*130)

=$288,000Forsegment2:pi=Ai/2Bi+c/2 pi=5,000/(2*40)+10/2

=$67.50Profit (pi–10)(5,000–40pi)

=(67.5–10)(5,000–40*67.5)

=$127,650Totalprofit$415,65073Example15-1:PricingtomultiExample15-1:PricingtomultiplesegmentsIftotalcapacityislimitedto4,000units,whatshouldthecontractmanufacturerchargeeachsegment?Forsegment1:p1=$130Demandd1=(5,000–20p