Cutting costs or enhancing revenues? An example of a multi-product firm with impatient customers illustrates an important choice facing operational researchers.
Peter C. BellJ. ChenPublished in: J. Oper. Res. Soc. (2006)
Keyphrases
- expected profit
- customer demand
- holding cost
- customer base
- switching costs
- inventory level
- pricing strategies
- asymptotically optimal
- call center
- dynamic pricing
- product information
- optimal capacity
- arrival rate
- production capacity
- heavy traffic
- computer science
- network effects
- market share
- software vendors
- financial services
- total cost
- network revenue management
- customer requirements
- product recommendation
- potential customers
- information goods
- customer preferences
- single product
- profit maximizing
- lead time
- market conditions
- supply chain
- decision making
- life cycle
- information technology
- demand variability
- product quality
- competitive environment
- expected cost
- customer service
- customer data
- production planning
- customer orders
- state dependent
- selling season