Yield management systems are used to:
a. determine the availability of product substitutes in industries that are experiencing rapid change.
b. profitably fill unused capacity by using complex mathematical systems.
c. predict necessary service levels required to achieve revenue goals.
d. determine whether it is financially more feasible to buy a new product or repair a broken one.
ANSWER: b
Yield management system (YMS) is a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity. YMS is spreading beyond service industries as its popularity increases.
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