Computational Analysis: Proof of Concept

Abstract

The objective of the present chapter is to verify the concept of the price-based revenue management program with regard to profit-maximizing used car retailers. After describing the complete revenue management module in section 6.1, the framework is applied to a chosen used vehicle in section 6.2. In section 6.3, the general potential for profit enhancement is estimated by analyzing an extensive independent dataset and comparing the discounted profit of observed sales with the corresponding expected profits determined by the revenue management program.