The objective of inventory management in the airline industry is ______.
A)to maximize the total revenues generated by the mix of fare classes sold for a flight
B)to ensure seats are cleaned
C)to provide the highest quality of service
D)nonexistent,as there is no inventory relevant to air transportation

Question

Quizplus · Accepted Answer

The objective of inventory management in the airline industry is to maximize the total revenues generated by the mix of fare classes sold for a flight. This involves managing the availability of seats in different fare classes and pricing them according to demand. This helps the airline optimize their revenue and profitability while also meeting customer demand. Cleaning seats and providing quality service are important aspects of airline operations but they are not directly related to inventory management. And while there may not be physical inventory like in a retail store, the availability of seats and pricing of fares are considered inventory in the airline industry.

The Objective of Inventory Management in the Airline Industry Is