Yield Management Is Strategic Control of Inventory

question 107

Multiple Choice

Yield management is strategic control of inventory.It maximizes revenue or profits from fixed perishable resources. ​
​What are the three rights of yield management?

• A)​right revenue at the right point of sale for the right items
• B)​right features at the right time for the right cost
• C)​right customer at the right time for the right price
• D)​right estimated price at the right location for the right time
• E)​right person at the right location for the right cost

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Definitions:

Fixed Overhead

The portion of a company's fixed costs that are not directly tied to production levels, such as rent and insurance.

LIFO Reserve

The difference between the cost of inventory calculated under the Last-In, First-Out method and the FIFO method.

LIFO

Last-In, First-Out, an inventory management method where the most recently produced or acquired items are sold first.

FIFO

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for 'First In, First Out'.