Case Article—Starting with Good Inputs: Unconstraining Demand Data in Revenue Management

INFORMS Transactions on Education

Mark Ferguson¹  Carrie Queenan² 

[1] College of Management, Georgia Institute of Technology, Atlanta, Georgia 30332;Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana 46556

关键词: unconstraining;    revenue management;    demand estimation;   

DOI  :  10.1287/ited.1090.0032ca

学科分类：社会科学、人文和艺术（综合）

来源: INFORMS

【 摘 要 】

Sales of goods and services are often limited by supply. This limitation restricts the knowledge of the true parameter values for the underlying demand distributions, values needed to calculate optimal protection levels in a revenue management system. We provide a teaching module and a case study to introduce students to the dangers of using “constrained demand.” The teaching module illustrates the negative financial impact of failing to unconstrain demand data. The case study provides realistic constrained demand data that students can use to practice unconstraining methods, such as the commonly used averaging method. We have used these materials successfully in MBA and executive education classes on revenue management. Case Teaching Note: Interested Instructors please see the Instructor Materials page for access to the restricted materials. To maintain the integrity and usefulness of cases published in ITE, unapproved distribution of the case teaching notes and other restricted materials to any other pa...

【 授权许可】

CC BY