IE515 PRICING AND REVENUE MANAGEMENT

Course Code:5680515
METU Credit (Theoretical-Laboratory hours/week):3 (3.00 - 0.00)
ECTS Credit:8.0
Department:Industrial Engineering
Language of Instruction:English
Level of Study:Graduate
Course Coordinator:Prof.Dr. SERHAN DURAN
Offered Semester:Fall and Spring Semesters.

Course Objectives

1- At the end of this course, students will understand the main concepts behind revenue management applications and how revenue management can improve contribution.

2- At the end of this course, students will understand what revenue management strategies and tactics can be implemented to manage demand.


Course Content

Price-response function, price response with competition, price differentiation, volume discounts, opportunity cost, variable pricing, markdown pricing, first-price auctions, second-price Auctions, English suctions, vickrey auctions, booking control, protection levels, network bid price control.


Course Learning Outcomes

Students will be able to:
- characterize the relationship between price and demand,
- identify opportunities for market segmentation in different industries,
- anticipate and plan for consumer reaction to different pricing policies,
- identify the pros and cons of main methodologies and practices of revenue management used
particularly in the airline industry.


Program Outcomes Matrix

Contribution
#Program OutcomesNoYes
1Specialize with advanced knowledge in selected areas of Industrial Engineering; such as Production and Operations Management, Supply Chain Management, Business Analytics and Information Systems, Decision Sciences and Operational Research, Quality Management, Human Factors and Ergonomics, and Strategy and Industrial Economics.✔
2Have advanced ability to formulate and solve industrial engineering problems.✔
3Be able to systematically acquire new scientific knowledge to design and improve socio-technical systems.✔
4Be able to conduct scientific research in industrial engineering.✔
5Be able to apply critical reasoning in their professional careers.✔
6Appreciate the academics ethics.✔