Revenue Management

Course Code
TO 470
1.5 hours
  • Winter 21 (B)

Revenue Management --- Managing supply and demand is one of the most difficult challenges in today's business. While we have heard of Supply Chain Management, an equally important concept is the so-called Demand Management, which focuses on the demand side on the equation instead of the supply side. For example, how should an airline sells its seats to maximize total revenues? How should a hotel manager manages room bookings in his property? How should a retailer optimize the timing of sales promotions? These are but a few examples of real business challenges that many firms need to face on a daily basis. This course introduces fundamental concepts and techniques of Demand Management (also called Revenue Management). Examples will be drawn from a variety of application contexts including airline, hotel, casino, web display advertisement, cruise, restaurant, e-commerce, and logistics. Since the course will involve analyzing data and building/solving an optimization model, we will use a combination of EXCEL and R. No prior exposure to R is required.