This document discusses supply chain management and revenue management systems. It begins by defining supply chain management as handling the entire production flow from raw materials to delivering the final product to consumers. It then lists the goals of supply chain management as improving performance, responsiveness, relationships, efficiency, and profitability. It describes internal supply management as focused internally and external supply management as focused externally. It also outlines strategic, tactical, and operational planning models for logistics. Finally, it defines revenue management as using pricing, promotions, and other strategies to maximize profit by balancing supply and demand, and lists functions and processes involved in revenue management systems.

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Supply Chain Optimization
Revenue Management System

2. BUSINESS INTELLIGENCE
Logistic and Production Models
Mrs. Megha Sharma
M.Sc. Computer Science, B.Ed.
Supply Chain Optimization
Revenue Management System

3. Supply Chain Management
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Supply chain management is the handling of the entire production flow of a good or service, starting
from the raw components all the way to delivering the final product to the consumer.
Manufacturer
Supplier
Wholesaler
Retailer
Customer

4. Goals of Supply Chain Management System
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Improve Performance, improve responsiveness, building good relationship.
Improving Efficiency; fulfil customer demand
Expand market to global level. Increase financial position of organization.
Minimize warehouse cost and transportation cost.

5. Types of Supply Chain Management
Internal
Supply
Management
• Focused on internal inventory internal
process, system, internal transformation
within organization.
External
Supply
Management
• Focused on external inventory i.e.
distributor , retailer shopper, finance.
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6. Optimization Models for Logistics Planning
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Strategic
Planning
• Medium to long term horizon.
• Focus on broad thinking and effectiveness over long term period.
• Set organisational mission and goals to achieve success in future.
Operational
Planning
• Focussed on short term goal, and specific for product.
• Divide broad concept of strategic planning into specific steps.
• Requires efficient, cost effective application.
Tactical
Planning
• Short to Medium term horizon.
• Simplest form more specific than strategic planning.
• Satisfy given demand and capacity.

7. Examples:
Strategic Tactical Operational
Customer Service Transport Order Picking
Channel of Distribution Depot Storage Load Scheduling
Depot Configuration Administration
Information
Stock update
Stock levels Order processing Goods receipt and
checking
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8. Revenue Management Systems
Revenue management is managerial policy whose purpose is to
maximize the profit ratio of organization through an optimal balance
between demand and supply.
 It is mainly used for logistic and marketing activities.
 For example, tourism, hotel sectors and manufacturing and
distribution industries.
 The objective of revenue management is to sell the right product
to the right customer at the right time for the right price.
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9. Functions of Revenue Management System
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10. Decision Process in Revenue Management
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Decision Levers:
• Prices
• Promotions
• Markdowns
• Assortment
• channels
Market response models
Optimization
Demand Management
Data mining-segmentation

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