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Management decision-making in the single period optimum pricing problem. (English) Zbl 1086.90522
Summary: Management of the firm implementing revenue management has many decisions to make regarding the details of the implementation. In this article we examine seven different decisions surrounding the implementation of aggressive ‘revenue management’ pricing in the context of a firm facing a single period stochastic pricing and stocking problem. We demonstrate through use of an example, that some of the decisions have a large financial impact, while other options that require considerable computational work to implement may provide little financial impact.

90B50 Management decision making, including multiple objectives
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