Which of the following characteristics makes revenue management UNATTRACTIVE to organizations that have perishable inventory?
A)demand can be segmented
B)service can be sold in advance of consumption
C)capacity is easily changed
D)variable costs are low and fixed costs are high
E)demand fluctuates

Question

Quizplus · Accepted Answer

Capacity is easily changed is unattractive for revenue management in organizations with perishable inventory because revenue management relies on fixed capacity to optimize pricing and inventory allocation. If capacity can be easily changed, the need for sophisticated revenue management strategies diminishes.

Which of the Following Characteristics Makes Revenue Management UNATTRACTIVE to Organizations