Question 1

The tactic of varying price over time is suitable for assets

Accepted Answer

A)  that do not have a clear date beyond which they lose a lot of their value. 
B)  that have a clear date beyond which they lose a lot of their value. 
C)  where customers are able to cancel orders and the value of the asset drops significantly after a deadline. 
D)  where customers are unable to cancel orders and the value of the asset drops significantly after a deadline. 
A)  that do not have a clear date beyond which they lose a lot of their value. 
B)  that have a clear date beyond which they lose a lot of their value. 
C)  where customers are able to cancel orders and the value of the asset drops significantly after a deadline. 
D)  where customers are unable to cancel orders and the value of the asset drops significantly after a deadline. B

Question 2

If higher price buyers have to be turned away because the capacity has already been committed to lower price buyers,this is

Accepted Answer

A)  spill. 
B)  spoilage. 
C)  wastage. 
D)  excess. 
A)  spill. 
B)  spoilage. 
C)  wastage. 
D)  excess. A

Question 3

Pricing can be used to

Accepted Answer

A)  change available supply. 
B)  reduce supply chain costs. 
C)  influence demand if customers are price sensitive. 
D)  all of the above 
A)  change available supply. 
B)  reduce supply chain costs. 
C)  influence demand if customers are price sensitive. 
D)  all of the above C

Question 4

How can firms address the problem of perishable assets?

Accepted Answer

Any asset that loses value over time is

Question 5

Shifting demand from peak to off-peak periods is beneficial if the discount given during the off-peak period is more than offset by the decrease in cost because of a smaller peak and the increase in revenue during the off-peak period.

Accepted Answer

A) True 
 B)False

Question 6

The cost of a capacity shortage is

Accepted Answer

A)  the reduction in margin that results from having to go to a backup source. 
B)  the margin that would have been generated if the capacity had been used for production. 
C)  the productivity increase generated when the capacity is used for production. 
D)  the sales potential of excess capacity kept in reserve for emergency production. 
A)  the reduction in margin that results from having to go to a backup source. 
B)  the margin that would have been generated if the capacity had been used for production. 
C)  the productivity increase generated when the capacity is used for production. 
D)  the sales potential of excess capacity kept in reserve for emergency production.

Question 7

Salespeople must understand the revenue management tactic in place so they can align their sales pitch accordingly.

Accepted Answer

A) True 
 B)False

Question 8

The goal when making the overbooking decision is to maximize supply chain profits by

Accepted Answer

A)  maximizing the value of wasted capacity and the cost of capacity shortage. 
B)  maximizing supply chain profits. 
C)  minimizing the cost of wasted capacity and the cost of capacity shortage. 
D)  minimizing the cost of wasted capacity and minimizing capacity shortages. 
A)  maximizing the value of wasted capacity and the cost of capacity shortage. 
B)  maximizing supply chain profits. 
C)  minimizing the cost of wasted capacity and the cost of capacity shortage. 
D)  minimizing the cost of wasted capacity and minimizing capacity shortages.

Question 9

The forecasting function is

Accepted Answer

A)  the foundation of any revenue management system. 
B)  unnecessary for a revenue management system. 
C)  an added plus for any revenue management system. 
D)  likely to create problems for any revenue management system. 
A)  the foundation of any revenue management system. 
B)  unnecessary for a revenue management system. 
C)  an added plus for any revenue management system. 
D)  likely to create problems for any revenue management system.

Question 10

Pricing may influence demand if customers are price sensitive.

Accepted Answer

A) True 
 B)False

Question 11

Ultimately,a proper understanding of customer preferences and a quantification of the impact of various tactics on consumer behavior are at the core of successful revenue management.

Accepted Answer

A) True 
 B)False

Question 12

Shifting demand from peak to off-peak periods is beneficial if the discount given

Accepted Answer

A)  during the off-peak period is more than offset by the decrease in cost because of a larger peak. 
B)  during the off-peak period is more than offset by the decrease in cost because of a smaller peak. 
C)  during the peak period is more than offset by the decrease in cost because of a smaller peak. 
D)  during the peak period is more than offset by the decrease in cost because of a larger peak. 
A)  during the off-peak period is more than offset by the decrease in cost because of a larger peak. 
B)  during the off-peak period is more than offset by the decrease in cost because of a smaller peak. 
C)  during the peak period is more than offset by the decrease in cost because of a smaller peak. 
D)  during the peak period is more than offset by the decrease in cost because of a larger peak.

Question 13

Explain why forecasting is important to revenue management.

Accepted Answer

The foundation of any revenue management

Question 14

The tactic of varying price over time is suitable for assets such as fashion apparel that have a clear date beyond which they lose a lot of their value.

Accepted Answer

A) True 
 B)False

Question 15

Revenue management is the use of marketing to increase the profit generated from a limited supply of supply chain assets.

Accepted Answer

A) True 
 B)False

Question 16

Unused capacity from the past is extremely valuable.

Accepted Answer

A) True 
 B)False

Question 17

Overbooking as a tactic has been used in many industries.However,it has not been used as much as possible in the following industry:

Accepted Answer

A)  hotels. 
B)  passenger rail. 
C)  airline. 
D)  transportation capacity. 
A)  hotels. 
B)  passenger rail. 
C)  airline. 
D)  transportation capacity.

Question 18

Examples of perishable assets would not include

Accepted Answer

A)  high-fashion apparel. 
B)  fruits. 
C)  computers. 
D)  ink jet printers. 
A)  high-fashion apparel. 
B)  fruits. 
C)  computers. 
D)  ink jet printers.

Question 19

How do firms address the problems of spoilage and spill?

Accepted Answer

In most instances of differential pricin

Question 20

The reserved quantity for the spot market will be affected by

Accepted Answer

A)  the difference in margin between the spot market and the bulk sale. 
B)  the distribution of demand from the bulk sale. 
C)  the distribution of demand from the spot market. 
D)  A and C only 
A)  the difference in margin between the spot market and the bulk sale. 
B)  the distribution of demand from the bulk sale. 
C)  the distribution of demand from the spot market. 
D)  A and C only

The tactic of varying price over time is suitable for assets

If higher price buyers have to be turned away because the capacity has already been committed to lower price buyers,this is

Pricing can be used to

How can firms address the problem of perishable assets?

Shifting demand from peak to off-peak periods is beneficial if the discount given during the off-peak period is more than offset by the decrease in cost because of a smaller peak and the increase in revenue during the off-peak period.

The cost of a capacity shortage is

Salespeople must understand the revenue management tactic in place so they can align their sales pitch accordingly.

The goal when making the overbooking decision is to maximize supply chain profits by

The forecasting function is

Pricing may influence demand if customers are price sensitive.

Ultimately,a proper understanding of customer preferences and a quantification of the impact of various tactics on consumer behavior are at the core of successful revenue management.

Shifting demand from peak to off-peak periods is beneficial if the discount given

Explain why forecasting is important to revenue management.

The tactic of varying price over time is suitable for assets such as fashion apparel that have a clear date beyond which they lose a lot of their value.

Revenue management is the use of marketing to increase the profit generated from a limited supply of supply chain assets.

Unused capacity from the past is extremely valuable.

Overbooking as a tactic has been used in many industries.However,it has not been used as much as possible in the following industry:

Examples of perishable assets would not include

How do firms address the problems of spoilage and spill?

The reserved quantity for the spot market will be affected by

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 16: Pricing and Revenue Management in a Supply Chain

The tactic of varying price over time is suitable for assets

If higher price buyers have to be turned away because the capacity has already been committed to lower price buyers,this is

Pricing can be used to

How can firms address the problem of perishable assets?

Shifting demand from peak to off-peak periods is beneficial if the discount given during the off-peak period is more than offset by the decrease in cost because of a smaller peak and the increase in revenue during the off-peak period.

The cost of a capacity shortage is

Salespeople must understand the revenue management tactic in place so they can align their sales pitch accordingly.

The goal when making the overbooking decision is to maximize supply chain profits by

The forecasting function is

Pricing may influence demand if customers are price sensitive.

Ultimately,a proper understanding of customer preferences and a quantification of the impact of various tactics on consumer behavior are at the core of successful revenue management.

Shifting demand from peak to off-peak periods is beneficial if the discount given

Explain why forecasting is important to revenue management.

The tactic of varying price over time is suitable for assets such as fashion apparel that have a clear date beyond which they lose a lot of their value.

Revenue management is the use of marketing to increase the profit generated from a limited supply of supply chain assets.

Unused capacity from the past is extremely valuable.

Overbooking as a tactic has been used in many industries.However,it has not been used as much as possible in the following industry:

Examples of perishable assets would not include

How do firms address the problems of spoilage and spill?

The reserved quantity for the spot market will be affected by

Understanding the Supply Chain

Supply Chain Performance: Achieving Strategic Fit and Scope

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand in a Supply Chain

Coordination in a Supply Chain

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Determining the Optimal Level of Product Availability

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Information Technology in a Supply Chain

Sustainability and the Supply Chain

Filters