Revenue management has a significant impact on supply chain profitability if
A)demand is stable and predictable.
B)the value of the product does not change regardless of market.
C)the product is sold both in bulk and on the spot market.
D)the product has a long shelf life.

Question

Quizplus · Accepted Answer

Revenue management is most effective when there is variability in demand and prices, which is often the case when a product is sold both in bulk and on the spot market. This allows for different prices and quantities to be sold depending on the market conditions, maximizing revenue and profitability. Stable and predictable demand (choice A) would not require as much revenue management, while the value of the product staying constant (choice B) does not necessarily affect revenue management. The length of the product shelf life (choice D) may impact the timing of revenue management decisions, but not necessarily the overall effectiveness of revenue management on supply chain profitability.

Revenue Management Has a Significant Impact on Supply Chain Profitability