Integrated capacity and price control in Revenue Management

Meer over het boek

Analyzing modern service and production processes reveals that intensified competition and unpredictable demand fluctuations create significant pressure to reduce costs through efficient process control while optimizing revenue via effective capacity and price management. Research in profit maximization primarily addresses two areas: cost reduction, often focusing on operational control of production schedules and logistics planning, with little emphasis on direct customer interaction; and capacity and price control, which typically examines only one aspect of profit-enhancing Revenue Management. The implementation of a Revenue Management approach must prioritize real-world applicability, particularly in light of unexpected demand fluctuations and unpredictable customer behavior regarding pricing. A viable solution must address these uncertainties to ensure practical information acquisition. In this context, Mr. Becher proposes a concept for integrated capacity and price control in Revenue Management utilizing Fuzzy Expert Controllers. This approach effectively addresses the revenue objectives while considering the inherent uncertainties in the market, providing a comprehensive framework for optimizing revenue in challenging conditions.