|This course will focus on the identification, formulation, solution, and implementation of systems for pricing and revenue optimization. The course will develop fundamental understanding of the use of pricing and capacity concepts combined with optimization tools to achieve revenue improvement within the practical context of limited resources and information. Case examples from a variety of industries including airlines, hotels, car rental agencies, internet/media advertising, entertainment, retailing, energy, commodities, freight, and manufacturing will be used to develop skills in designing and implementing solutions in different environments.
Students will learn how to recognize opportunities for revenue enhancement; how to differentiate among types of opportunities; how to segment markets while incorporating constrained capacity, opportunity costs, customer and competitor response, demand and supply uncertainty, and information infrastructure; how to formulate and solve for revenue management decisions using constrained optimization; and how to define overall implementation requirements.
|The course will use the text, Pricing and Revenue Optimization, by R. Phillips, Stanford, 2005, plus cases, readings, and lecture notes. The course will rely heavily on the use of the Solver in Microsoft Excel.|