Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
13th Edition
ISBN: 9780135225899
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 13, Problem 1.1VC
Summary Introduction
Case summary:
Many companies including Company OM tried to implement dynamic pricing in their ticketing system. The dynamic pricing based on the popularity and the number of games is as follows:
| Popularity rating of opponent | Number of games | Price |
| Tier I | 3 | $187 |
| Tier II | 3 | $170 |
| Tier III | 4 | $85 |
| Tier IV | 6 | $75 |
| Tier V | 14 | $60 |
| Tier VI | 9 | $44 |
| Tier VII | 6 | $40 |
| Average | $68 |
Company OM has capable revenue management technique. It follows three different types of pricing strategy, which are setting price during the beginning of the season and do not change throughout the season, setting a price based on the popularity of an opponent, and pricing tickets based on the projected demand and changing based on the actual market demand.
Person P and Person D of Company OM use different tools to change the seat price based on the demand. Company OM would provide offer prices and seats at a prime rate in the existing games.
To determine: How Company OM differs from other air carriers regarding the revenue management.
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Problem 4 (Regression Analysis, Service Company)
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QUESTION 2
In the airline market, vacation-traveler customers have a more elastic demand than business-traveler customers, although the marginal cost of serving either type of customer is the same. If the airline companies engage in price discrimination, which customers end up paying a higher price?
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QUESTION 3
A seller engages in price discrimination by market segment. Morning customers have a price elasticity of demand E = -2, while evening customers have a price elasticity of demand E = -3. The MC of selling to both groups is the same and constant at $100. Therefore:
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Chapter 13 Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
Ch. 13 - Prob. 1DQCh. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Question: 7. What is level scheduling? What is the...Ch. 13 - Question: 8. Define mixed strategy. Why would a...Ch. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Question: 11. What is the relationship between the...Ch. 13 - Prob. 12DQCh. 13 - Question: 13. What are major limitations of using...Ch. 13 - Prob. 14DQCh. 13 - Question: 13.1 Prepare a graph of the monthly...Ch. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Question: 13.10 The SOP team (see Problem 13.9)...Ch. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Question: 13.14 Jerusalem Medical Ltd., an...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Question: 13.18 Jose Martinez of El Paso has...Ch. 13 - Prob. 19PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Prob. 1CSCh. 13 - Prob. 2CSCh. 13 - Prob. 1.1VCCh. 13 - Prob. 1.2VCCh. 13 - Question: 3. What are some concerns the team needs...
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