Revenue Management --- Revenue Management has, in the last decade, become a very important analytical tool for companies to optimize the revenues they can obtain for services or goods under capacity constraints. Revenue Management strongly complements the pricing decisions of firms by developing tools to help companies implement strategies using business analytics. Systems for revenue optimization, also called yield management or revenue management, combine the use of information technology, statistical forecasting, and mathematical optimization to make tactical decisions to maximize revenues.
The airline industry is the poster child for the success of revenue management, but the principles behind revenue management are being applied successfully in other industries as well. Accordingly, the case studies will feature a broad range of existing and potential applications, including: ad words in search engines; ticket revenue management in entertainment; software versioning; markdown optimization; customized pricing in B2B; and revenue management applications in the financial sector. Simulation-based instructional games will be used to showcase revenue management applications.
The high-level course objective is to convey to future business leaders innovative ways to boost the bottom-line. The course will explore how firms can improve the operational management of the demand for their products (goods or services) to more effectively align it with their supply through business analytics lenses. The course will introduce quantitative methods to improve decision-making, with special emphasis on spreadsheet modeling and analysis.