Conception for a simultaneous capacity and price control


The design of a concept for SCPC needs, firstly, the specification of the requirements for SCPC as a method for RM in the context of the revenue maximization problem. This includes the description of the addressed planning levels, which have to be considered in the SCPC and the planning tasks that have to be executed. Following the central planning tasks of RM, its underlying application constraints are outlined. The formulation of the objective system of SCPC leads to several problems influencing the operational design of the solution concept. The development of the solution and its first areas of application indicate the appropriate implementation of SCPC.


Consumer Surplus Reservation Price Customer Relationship Management Planning Period Price Control 
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    Forecasting is the prediction of an event, a state or a development over time. Qualitative and quantitative forecasting techniques can be distinguished. In this context, especially quantitative methods are relevant. Examples are exponential smoothing, regressions or various autoregressive and moving-average methods [Lancaster/ Salkauskas 1986; Schlittgen/Streitberg 1987; Bamberg/Baur 1998, pp. 217; Tempelmeier 2005].Google Scholar
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    A central problem in the context of RM is thereby the presence of censored (constrained) data where only the accepted requests of customers are stored in the data basis. Rejected offers (from the supplier or consumer side) are not saved. Thus, not the real demand and transaction structure is reproduced in the data. Several techniques are available for the unconstraining of data [Talluri/ van Ryzin, pp. 473].Google Scholar
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    The price elasticity of demand ε can be explained as the percent change of demand (in our context the amount of requested capacity units, x) with respect to one percent change in the price (p): ε=†x/x/†p/p. The price elasticity can be the reason for significantly different price levels in different markets despite that the same product is sold. If the demand is price-elastic, even small variations of the price lead to a noticeable change in the demand. A price-inelastic demand does not change with price modifications [Varian 1999, pp. 257].Google Scholar
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