Using Revenue Management in Multiproduct Production-Inventory Systems

Hadi Esmaeili Ahangarkolaei, Mohammad Saeid Zandi

Abstract: The study aims at investigating how revenue management techniques can be applied in industries which offer multiple products. Most of the companies nowadays trend to produce multiproduct and they try to find the best method of selling. Therefore, revenue management can be considered as a new direction which should be developed for these firms. In this study, multi-product firms are mainly referred as firms offering a bundle of products or substitute products. The main findings of this study are (1) identifying and analyzing the most important factors affecting decision making regarding managing of bundling and substitute products and ultimately total revenue of multiproduct firms. (2) Summarizing the results and knowledge obtained from various studies within fields of bundling and substitute products. (3) Discussing the possibility of applying different revenue management techniques to these fields. (4) Identifying potentials and new directions for future study with respect to both revenue management techniques and multiproduct firms.

Keywords: Revenue Management, Multiproduct, Bundling Product, Substitute Product, Assortment Planning, Pricing, Inventory Management