CHAPTER 8
Revenue Management and Capacity Analysis
Two topics with special relevance for revenue management are capacity analysis, especially the capacity model developed by Computer Aided Manufacturing-International (CAM-I), and the theory of constraints (TOC), as set forth by Eli Goldratt in The Goal and subsequent publications. This chapter discusses capacity analysis; the TOC is presented in Chapter 9.
Considerations of capacity are central to revenue management, which is about generating additional revenue (selling unused capacity) in a profitable way.
Background: Capacity Management
Concern regarding the analysis, costing, and management of capacity has been a long-standing issue in accounting, finance, and management. McNair and Vangermeersch ...
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