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Supply Chain Final Work.edited

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Engineering

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The University of Texas at Austin

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SUPPLY CHAIN 1
Supply Chain
Name
Course
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SUPPLY CHAIN 2
Chapter 16 Price and Revenue Management in SC
In what ways can a retailer such as Nordstrom take advantage of revenue management
opportunities?
Nordstrom Inc is a renowned fashion retailer with over 248 Nordstrom Rack locations
across the United States of America and Canada. They also serve their clients online. These
Nordstrom Rack stores can leverage revenue management opportunities to adjust the prices of
their commodities to reap maximum profit from the available inventory. Dynamic pricing
strategy is used to achieve this. Dynamic or demand pricing sets flexible prices for clothing
commodities depending on customer demand, product availability, and season (Chopra, 2019).
This pricing strategy is suitable especially for seasonal products since they lose value as time
goes on. At the start of the season, when fashion apparels are in high demand, the prices are high.
Prices are adjusted downwards as the season progresses to ensure that customers still buy the
commodities. Through giving out discounts, this is achieved.
What revenue management opportunities are available to a manufacturer? How can it take
advantage of these opportunities?
Revenue management opportunities in the manufacturing industry are aimed at
maximizing capacity utilization and ultimately maximize revenues collected. Past production
history and current order activities are used to forecast future demand. A manufacturer can profit
by overbooking or overselling certain products that are highly likely to get canceled by clients.
Production capacity is undoubtedly the manufacturer's leading and most significant asset
however, production capacity losses worth at the end of the production period. A manufacturer

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SUPPLY CHAIN 1 Supply Chain Name Course Date SUPPLY CHAIN 2 Chapter 16 Price and Revenue Management in SC In what ways can a retailer such as Nordstrom take advantage of revenue management opportunities? Nordstrom Inc is a renowned fashion retailer with over 248 Nordstrom Rack locations across the United States of America and Canada. They also serve their clients online. These Nordstrom Rack stores can leverage revenue management opportunities to adjust the prices of their commodities to reap maximum profit from the available inventory. Dynamic pricing strategy is used to achieve this. Dynamic or demand pricing sets flexible prices for clothing commodities depending on customer demand, product availability, and season (Chopra, 2019). This pricing strategy is suitable especially for seasonal products since they lose value as time goes on. At the start of the season, when fashion apparels are in high demand, the prices are high. Prices are adjusted downwards as the season progresses to ensure that customers still buy the commodities. Through giving out discounts, this is achieved. What revenue management opportunities are available to a manufacturer? How can it take advantage of these opportunities? Revenue management opportunities in the manufacturing industry are aimed at maximizing capacity utilization and ultimately maximize revenues collected. Past production history and current order activities are used to forecast future demand. A manufacturer can profit by overboo ...
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