1、Chapter 15Pricing and Revenue Management in the Supply ChainTrue/False1. Revenue management is the use of marketing to increase the profit generated from a limited supply of supply chain assets.Answer: FalseDifficulty: Moderate2. Pricing may influence demand if customers are price sensitive.Answer:

2、TrueDifficulty: Moderate3. Revenue management may also be defined as the use of differential pricing based on customer segment, time of use, and product or capacity availability to increase supply chain surplus.Answer: TrueDifficulty: Moderate4. Revenue management adjusts the pricing and available s

3、upply of assets to maximize profits.Answer: TrueDifficulty: Easy5. In theory, the concept of differential pricing decreases total cost for a firm.Answer: FalseDifficulty: Moderate6. To differentiate between the various market segments, the firm must either eliminate barriers that identify product or

4、 service attributes the segments value differently.Answer: FalseDifficulty: Easy7. In most instances of differential pricing, demand from the segment paying the lower price arises earlier in time than demand from the segment paying the higher price.Answer: TrueDifficulty: Moderate8. The basic trade-

5、off to be considered by the supplier with production capacity is between committing to an order from a high-price buyer or waiting for a lower price buyer to arrive later on.Answer: FalseDifficulty: Easy9. Spoilage occurs when the capacity reserved for higher price buyers is wasted because demand fr

6、om the higher price segment does not materialize.Answer: TrueDifficulty: Easy10. Wastage occurs if higher price buyers have to be turned away because the capacity has already been committed to lower price buyers.Answer: FalseDifficulty: Moderate11. An order from a lower price buyer should be accepte

7、d if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer.Answer: True Difficulty: Easy12. The amount of the asset reserved for the higher price segment is such that the expected marginal revenue from the higher priced segment is less than the p

8、rice to the lower price segment.Answer: FalseDifficulty: Hard13. Any asset that loses value over time is perishable.Answer: TrueDifficulty: Easy14. Unused capacity from the past is extremely valuable.Answer: FalseDifficulty: Easy15. The tactic of varying price over time is suitable for assets such a

9、s fashion apparel that have a clear date beyond which they lose a lot of their value.Answer: TrueDifficulty: Easy16. Effective differential pricing over time will generally increase the level of product availability for the consumer willing to pay full price, but will decrease total profits for the

10、retailer.Answer: FalseDifficulty: Moderate17. The tactic of overbooking or overselling the available asset is suitable in any situation where customers are able to cancel orders and the value of the asset drops significantly after a deadline.Answer: TrueDifficulty: Easy18. The basic trade-off to con

11、sider during overbooking is between having wasted capacity (or inventory) because of few cancellations or having a shortage of capacity (or inventory) because of excessive cancellations.Answer: FalseDifficulty: Moderate19. The cost of wasted capacity is the margin that would have been generated if t

12、he capacity had been used for production.Answer: TrueDifficulty: Moderate20. The cost of a capacity shortage is the increase in productivity that results from having to go to a backup source.Answer: FalseDifficulty: Moderate21. The goal when making the overbooking decision is to maximize supply chai

13、n profits by minimizing the cost of wasted capacity and the cost of capacity shortage.Answer: TrueDifficulty: Moderate22. Faced with seasonal peaks, an effective revenue management tactic is to charge a higher price during the peak period and a higher price during off-peak periods.Answer: FalseDiffi

14、culty: Hard23. Shifting demand from peak to off-peak periods is beneficial if the discount given during the off-peak period is more than offset by the decrease in cost because of a smaller peak and the increase in revenue during the off-peak period.Answer: TrueDifficulty: Easy24. Firms must decide w

15、hat fraction of the asset to sell in bulk and what fraction of the asset to save for destructive testing.Answer: FalseDifficulty: Easy25. The amount reserved for the spot market should be such that the expected marginal revenue from the spot market equals the current revenue from a bulk sale.Answer:

16、 TrueDifficulty: Moderate26. The reserved quantity will be affected by the difference in margin between the spot market and the bulk sale, but not the distribution of demand from the spot market.Answer: FalseDifficulty: Moderate27. Ultimately, a proper understanding of customer preferences and a qua

17、ntification of the impact of various tactics on consumer behavior are at the core of successful revenue management.Answer: TrueDifficulty: Moderate28. The forecasting function is not necessary for most revenue management systems.Answer: FalseDifficulty: Moderate29. The goal of optimization is to use

18、 forecasts of customer behavior to identify a revenue management tactic that will be most effective.Answer: TrueDifficulty: Easy30. Too high a level of overbooking will lead to unutilized assets and lost revenue.Answer: FalseDifficulty: Easy31. Too low a level of overbooking will lead to unutilized

19、assets and lost revenue.Answer: TrueDifficulty: Easy32. Salespeople must understand the revenue management tactic in place so they can align their sales pitch accordingly.Answer: TrueDifficulty: Easy33. Customers will have a negative perception of revenue management tactics if they are simply presen

20、ted as a mechanism for extracting maximum revenue.Answer: TrueDifficulty: EasyMultiple Choice1. Pricing can be used toa. change available supply.b. reduce supply chain costs.c. influence demand if customers are price sensitive.d. all of the abovee. a and c onlyAnswer: cDifficulty: Moderate2. Revenue

21、 management isa. the use of marketing tools to increase revenue.b. the use of pricing to increase the profit generated from a limited supply of supply chain assets.c. a process designed to determine the best use of funds generated through sales.d. the use of accounting tools to monitor cash flow.e.

22、none of the aboveAnswer: bDifficulty: Hard3. The two forms of supply chain assets are a. capacity and inventory.b. capacity and revenue.c. inventory and revenue.d. inventory and warehouse space.e. none of the aboveAnswer: aDifficulty: Easy4. Revenue management may be defined asa. the use of differen

23、tial costing based on product or capacity availability to decrease supply chain cost.b. the use of differential costing based on customer segment, time of use, and product or capacity availability to increase profitability.c. the use of differential pricing based on customer segment, time of use, an

24、d product or capacity availability to decrease supply chain surplus.d. the use of differential pricing based on customer segment, time of use, and product or capacity availability to increase supply chain surplus.e. none of the aboveAnswer: dDifficulty: Moderate5. Revenue management has a significan

25、t impact on supply chain profitability when which of the following four conditions exist?a. The value of the product varies in different market segments.b. The product is highly perishable or product wastage occurs.c. Demand has seasonal and other peaks.d. The product is sold both in bulk and the sp

26、ot market.e. any of the aboveAnswer: eDifficulty: Easy6. The use of differential pricing shoulda. decrease total profits for a firm.b. increase total profits for a firm.c. increase capacity for a firm.d. decrease capacity utilization for a firm.e. None of the above are true.Answer: bDifficulty: Mode

27、rate7. Which of the following are issues that must be dealt with in order for differential pricing to be effective? a. The firm must differentiate between the market segments and structure its pricing to make one segment pay more than the other.b. The firm must control demand such that the lower pay

28、ing segment does not utilize the entire availability of the asset.c. The firm must secure enough capacity to meet demand from each segment.d. all of the abovee. a and b onlyAnswer: eDifficulty: Moderate8. To differentiate between the various market segments, the firm musta. create barriers by identi

29、fying product or service attributes that the segments value differently.b. eliminate barriers that identify product or service attributes that the segments value differently.c. negotiate separately with different market segments that value product or service attributes differently.d. develop pricing

30、 structures based on the volume of various product or service attributes.e. none of the aboveAnswer: aDifficulty: Moderate9. In most instances of differential pricing, demand from the segment paying the lower pricea. arises earlier in time than demand from the segment paying the higher price.b. aris

31、es later in time than demand from the segment paying the higher price.c. arises about the same time as demand from the segment paying the higher price.d. arises both earlier and later in time than demand from the segment paying the higher price.e. none of the aboveAnswer: aDifficulty: Moderate10. Th

32、e basic trade-off to be considered by the supplier with production capacity is betweena. committing to an order from a high-price buyer or waiting for a lower price buyer to arrive later on.b. committing to an order from a lower price buyer or waiting for a high-price buyer to arrive later on.c. all

33、owing the market to be controlled by price or capacity.d. having marketing or operations establish the constraints within which orders are accepted.e. none of the aboveAnswer: bDifficulty: Easy11. When the capacity reserved for higher price buyers is wasted because demand from the higher price segme

34、nt does not materialize, this is a. spill.b. spoilage.c. wastage.d. excess.e. none of the aboveAnswer: bDifficulty: Moderate12. If higher price buyers have to be turned away because the capacity has already been committed to lower price buyers, this is a. spill.b. spoilage.c. wastage.d. excess.e. no

35、ne of the aboveAnswer: aDifficulty: Moderate13. An order from a lower price buyera. should always be accepted rather than waiting for potential revenue from a higher price buyer .b. should only be accepted if the expected revenue from a higher price buyer is higher than the current revenue from the

36、lower price buyer.c. should be accepted if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer.d. should not be accepted if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer.e. none of t

37、he aboveAnswer: cDifficulty: Easy14. To successfully use revenue management when serving multiple customer segments, a firm must use which of the following tactics effectively?a. price based on the value assigned by each segmentb. use different prices for each segmentc. forecast at the segment level

38、d. all of the abovee. a and b onlyAnswer: dDifficulty: Moderate15. The amount of the asset reserved for the higher price segment is such thata. all orders from the lower priced segment will be accepted and filled.b. the expected marginal revenue from the higher priced segment is more than the price

39、to the lower price segment.c. the expected marginal revenue from the higher priced segment is less than the price to the lower price segment.d. the expected marginal revenue from the higher priced segment equals the price to the lower price segment.e. none of the aboveAnswer: dDifficulty: Moderate16

40、. A perishable asset isa. something that decays or deteriorates.b. an item that has a short life span.c. any asset that loses value over time.d. all of the abovee. none of the aboveAnswer: cDifficulty: Moderate17. Which of the following is not a perishable asset?a. fruits and vegetablesb. high fashi

41、on apparelc. computers and cell phonesd. production, transportation, and storage capacity that is wasted if not fully utilizede. All of the above are perishable assets.Answer: eDifficulty: Moderate18. Which of the following is (are) revenue management tactics appropriate for perishable assets?a. Var

42、y price over time to maximize expected revenue.b. Underbook sales of the asset to account for unexpected demand.c. Overbook sales of the asset to account for cancellations.d. all of the abovee. a and c onlyAnswer: dDifficulty: Moderate19. The tactic of varying price over time is suitable for assets

43、a. that do not have a clear date beyond which they lose a lot of their value.b. that have a clear date beyond which they lose a lot of their value.c. where customers are able to cancel orders and the value of the asset drops significantly after a deadline.d. where customers are unable to cancel orde

44、rs and the value of the asset drops significantly after a deadline.e. none of the aboveAnswer: bDifficulty: Moderate20. Effective differential pricing over time will generallya. decrease the level of product availability for the consumer willing to pay full price and also decrease total profits for

45、the retailer.b. decrease the level of product availability for the consumer willing to pay full price but will increase total profits for the retailer.c. increase the level of product availability for the consumer willing to pay full price and also increase total profits for the retailer.d. increase

46、 the level of product availability for the consumer willing to pay full price but will decrease total profits for the retailer.e. none of the aboveAnswer: cDifficulty: Moderate21. The tactic of overbooking or overselling the available asset is suitable wherea. there is a clear date beyond which the

47、asset loses a lot of its value.b. there is no clear date beyond which the asset loses a lot of its value.c. customers are able to cancel orders and the value of the asset drops significantly after a deadline.d. customers are unable to cancel orders and the value of the asset drops significantly afte

48、r a deadline.e. none of the aboveAnswer: cDifficulty: Moderate22. The basic trade-off to consider during overbooking is betweena. having wasted capacity (or inventory) or a shortage of capacity (or inventory).b. having lost sales or a shortage of capacity (or inventory).c. having wasted capacity (or

49、 inventory) or excess capacity (or inventory).d. having high sales or a shortage of capacity (or inventory).e. none of the aboveAnswer: aDifficulty: Moderate23. Wasted capacity (or inventory) occurs whena. there are excessive cancellations.b. there are few cancellations.c. an expensive backup needs

50、to be arranged.d. all of the abovee. a and c onlyAnswer: aDifficulty: Easy24. A shortage of capacity (or inventory) occurs whena. there are excessive cancellations.b. there are few cancellations.c. an expensive backup needs to be arranged.d. all of the abovee. b and c onlyAnswer: eDifficulty: Easy25

51、. The cost of wasted capacity isa. the reduction in margin that results from having to go to a backup source.b. the margin that would have been generated if the capacity had been used for production.c. the productivity increase generated when the capacity is used for production.d. the sales potentia

52、l of excess capacity kept in reserve for emergency production.e. none of the aboveAnswer: bDifficulty: Moderate26. The cost of a capacity shortage isa. the reduction in margin that results from having to go to a backup source.b. the margin that would have been generated if the capacity had been used

53、 for production.c. the productivity increase generated when the capacity is used for production.d. the sales potential of excess capacity kept in reserve for emergency production.e. none of the aboveAnswer: aDifficulty: Moderate27. The goal when making the overbooking decision is to maximize supply

54、chain profits by a. maximizing the value of wasted capacity and the cost of capacity shortage.b. maximizing supply chain profits.c. minimizing the cost of wasted capacity and the cost of capacity shortage.d. minimizing the cost of wasted capacity and minimizing capacity shortages.e. none of the abov

55、eAnswer: cDifficulty: Hard28. An effective revenue management tactic when faced with seasonal peaks is to charge aa. high price during the peak period and a higher price during off-peak periods.b. higher price during the peak period and a lower price during off-peak periods.c. lower price during the

56、 peak period and a higher price during off-peak periods.d. low price during the peak period and a lower price during off-peak periods.e. none of the aboveAnswer: bDifficulty: Moderate29. Shifting demand from peak to off-peak periods is beneficial if the discount givena. during the off-peak period is

57、 more than offset by the decrease in cost because of a larger peak.b. during the off-peak period is more than offset by the decrease in cost because of a smaller peak.c. during the peak period is more than offset by the decrease in cost because of a smaller peak.d. during the peak period is more than offset by the decrease in cost because of a larger peak.e. none of the above