OM- Midterm Examination

Revenue Management used to make appropriate decisions for business pricing and distribution.

• TRUE

• FALSE

When demand exceeds the optimal supply level, errors starts to occur, and the service quality starts to decline.

• TRUE

• FALSE

RM involves using analytics and performance data to help business predict their customers behavior.

• TRUE

• FALSE

Inventory management requires knowing what product are in your inventory and where they are located within your warehouse.

• TRUE

• FALSE

RevPATH translate into the product of capacity utilization and average revenue per service transaction on the demand side.

• TRUE

• FALSE

Managing demand is the act of identifying, acquiring and managing resources and suppliers that are essential to the operations of an organization.

• TRUE

• FALSE

The RevPAR measures the total operating revenue / number of available seat miles.

• TRUE

• FALSE

Strategic capacity inventory is how companies figure out the production capacity needed in order to meet consumer demand.

• TRUE

• FALSE

Distribution channel also called a marketing channel.

• TRUE

• FALSE

When the demand exceeds the maximum available capacity, quality of service deteriorates significantly because staff are stretched to the limit.

• TRUE

• FALSE