Undergraduate
Faculty of Engineering and Architecture
Industrial Engineering
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Industrial Engineering Main Page / Program Curriculum / Pricing and Revenue Management

Pricing and Revenue Management

Course CodeSemester Course Name LE/RC/LA Course Type Language of Instruction ECTS
IE0105 Pricing and Revenue Management 3/0/0 DE English 5
Course Goals
This course is designed to teach the fundamental concepts and applications in revenue and pricing optimization and management. The course provides students the necessary background, quantitative models, and data analysis skills so that they can identify and exploit opportunities for profit maximization in a variety of industrial and business contexts.
Prerequisite(s) -
Corequisite(s) -
Special Requisite(s) -
Instructor(s) Assist. Prof. Dr. Duygun Fatih Demirel
Course Assistant(s)
Schedule This course is not offered this semester.
Office Hour(s) -
Teaching Methods and Techniques -Oral Presentation
Principle Sources -Pricing and Revenue Optimization - R.L. Phillips. Stanford University Press
Other Sources -Slides and course notes
Course Schedules
Week Contents Learning Methods
1. Week Background and Introduction Oral presentation
2. Week Introduction to Pricing and Revenue Optimization Oral presentation
3. Week Basic Price Optimization: The Price-Response Function, Price Response with Competition Oral presentation
4. Week Basic Price Optimization: Incremental Costs, The Basic Price Optimization Problem Oral presentation
5. Week Price Differentiation Oral presentation
6. Week Pricing with Constrained Supply Oral presentation
7. Week Revenue Management: Booking Control, Tactical Revenue Management Oral presentation
8. Week Midterm -
9. Week Net Contribution to Revenue Management, Measuring Revenue Management Effectiveness Oral presentation
10. Week Capacity Allocation Oral presentation
11. Week Network Management Oral presentation
12. Week Overbooking Oral presentation
13. Week Markdown Management Oral presentation
14. Week Customized Pricing, Pricing, and Revenue Optimization and Customer Acceptance Oral presentation
15. Week Final -
16. Week Final -
17. Week Final -
Assessments
Evaluation tools Quantity Weight(%)
Midterm(s) 1 35
Quizzes 3 10
Homework / Term Projects / Presentations 3 10
Attendance 14 5
Final Exam 1 40


Program Outcomes
PO-1Ability to apply theoretical and practical knowledge gained by Mathematics, Science and their engineering fields and ability to use their knowledge in solving complex engineering problems.
PO-2Ability of determining, defining, formulating and solving complex engineering problems; for that purpose develop the ability of selecting and implementing suitable models and methods of analysis.
PO-3Ability of designing a complex system, process, device or product under real world constraints and conditions serving certain needs; for this purpose ability of applying modern design techniques
PO-4Ability of selecting and using the modern techniques and devices which are necessary for analyzing and solving complex problems in engineering implementations; ability of efficient usage of information technologies.
PO-5Ability of designing experiments, conducting tests, collecting data and analyzing and interpreting the solutions to investigate of complex engineering problems or discipline-specific research topics.
PO-6Ability of working efficiently in intra-disciplinary and multi-disciplinary teams; individual working ability and habits.
PO-7Ability of verbal and written communication skills; and at least one foreign language skills, ability to write effective reports and understand written reports, ability to prepare design and production reports, ability to make impressive presentation, ability to give and receive clear and understandable instructions
PO-8Awareness of importance of lifelong learning; ability to access data, to follow up the recent innovation in science and technology for continuous self-improvement.
PO-9Conformity to ethical principles; knowledge about occupational and ethical responsibility, and standards used in engineering applications.
PO-10Knowledge about work life implementations such as project management, risk management and change management; awareness about entrepreneurship and innovativeness; knowledge about sustainable development.
PO-11Knowledge about effects of engineering applications on health, environment and security in global and social dimensions, and on the problems of the modern age in engineering; awareness about legal outcomes of engineering solutions.
Learning Outcomes
LO-1Understand the fundamental ideas for pricing to maximize profit in organizations
LO-2Understand the economics of price differentiation
LO-3Utilize capacity allocation and network management concepts in in order to maximize profitability
LO-4Exploit efficient implementations through concepts of overbooking, markdown management and customized pricing
LO-5Implement pricing and revenue optimization techniques in real life problems
LO-6Finds solutions to pricing and revenue optimization problems that consider customer acceptance
Course Assessment Matrix:
Program Outcomes - Learning Outcomes Matrix
 PO 1PO 2PO 3PO 4PO 5PO 6PO 7PO 8PO 9PO 10PO 11
LO 1
LO 2
LO 3
LO 4
LO 5
LO 6