Pricing and Revenue Management in Logistic & Supply Chain Management

Abstract

In supply chain, allowing organization to increase revenue since the modern technology enables price changes to be affected at the minimum cost in the supply chain. In supply chain also understandable is managing dynamics of supply chain, both the internal operations, and the relationship. Pricing decisions have different effects on operations in logistics and supply chain. In supply chain management, revenue management is the use of pricing to increase the supply chain surplus, profit generated from the limited supply chain available on the assets utilized. Pricing is a factor that gears up profit in supply chain through an approval to match supply chain demand. Revenue management can be defined as the application of pricing to increase profit, which is produced from a limited supply of supply chain assets. The supply chain limited assets are available for assembly, shipment, storage, while inventory are available in the inner portion of supply chain activities, which are utilized to develop , and make items accessible for production, distribution, wholesalers, selling. In supply chain there may be two forms one is the capacity of the assets that exist for production, transportation, storage, and another is the inventory that exist in order to improve the product availability, in which multiple customers, revenue management aims to grow profits by selling the assets to the customer, at the right price in supply chain.