Which of the following statements is true about yield management systems (YMS)?
A)They are used to eliminate the problem of simultaneous production and consumption from services.
B)They are restricted to use only in service industries.
C)They are complex pricing systems used to establish price equilibrium.
D)They are used to make profitable use of the unused capacity of perishable goods.

Question

Quizplus · Accepted Answer

Yield management systems (YMS) are used to make profitable use of the unused capacity of perishable goods, such as hotel rooms or airline seats. YMS involves setting different prices for the same product or service depending on factors such as time of day, day of the week, and demand levels. This allows businesses to maximize revenue by selling as much of their perishable inventory as possible at the highest price possible. YMS is commonly used in the hospitality and transportation industries. The other options are incorrect as YMS is not used to eliminate the problem of simultaneous production and consumption from services, nor is it restricted to use in service industries. Additionally, while YMS involves pricing, it is not necessarily used to establish price equilibrium.

Which of the Following Statements Is True About Yield Management