Revenue management with explicit objective of revenue

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Reference no: EM131116464

The use of revenue management with the explicit objective of maximizing revenue (as opposed to maximizing profit) is most appropriate when …

a. The variability in demand is high relative to the mean.

b. The variable cost of serving a customer is negligible.

c. There are only two customer segments.

d. Net profit as a percentage of revenue is low.

e. Capacity is significantly constrained.

Reference no: EM131116464

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