Revenue Management Of The Products In Product Service System

Revenue management is a new management technology to maximize the reve-nue, and it is currently used in hotels, airlines and other traditional service industries, and has achieved good results. However, with the development of economy, service industries have begun to integrate with manufacturing industries, and service prod-ucts are no longer confined to traditional "intangible products ", while showing a va-riety of features, and Product-Service system is a prime example. Product-Service Systems (PSS) is a system consisting of products, services, and support structures, which make products (including inherent services) more competitive and can satisfy customers'demand; In addition, comparing with the traditional business model, PSS is focused on product's function, rather than physical characteristics, and produces smaller impact on environment. It is due to the concept "dematerialization" of Prod-uct-Service system, making the product not only has the physical characteristics, such as size, weight and other physical properties of products in general, but also the main characteristics of service products, such as homogeneity, so it is very different in revenue management of PSS product, and it will be different from ordinary physical products and traditional services products. How to utilize revenue management in different processes of PSS is the purpose of this paper. In this paper, under the direc-tion of revenue management theory, the orders of value-delivery in PSS are explored, and we focused on the three proceeds of design, configuration, and sale in the system.Firstly, because PSS products have dual properties of physics and service, we research the orders of value-delivery in two aspects. According to some existing re-searches, the value-delivery of property could be summarized that value is transferred from raw materials to final products or from cost to profit. In view of the past, the value of physical products has been studied a lot, so this paper will be no longer in-depth study on it. The service products are non-perceptible and inseparable; the orders of value-delivery are very different from physical products. Firstly, the devel-opment of the service value creation process was reviewed: it began as a value chain creation mode, and then formed a factory-style value creation model, and eventually evolved into the value of network-based value creation model. Secondly, the pricing of products on the service model is also discussed, and details the conservative ser-vices products pricing model and dynamic pricing models. Finally, after value is created and pricing models are discussed, the paper sets an example that Apple coo-perated with AT&T Company in the business to form a new Product-Service system for the value as a quantitative analysis, and pointed out that in such PSS products, the value being created by service properties is much larger than the value being created by Physical properties.Secondly, we focused on the impact of the diversity of the service on the system revenue in product planning process of Product-Service system. This paper divides the Product-Service system into two sectors, physical product-manufacture sector and service-provision sector, and modeling on the benefits of the two sectors. Finally we come to two conclusions: 1. Marginal revenues of different PSS products play a role on the allocation of system resource. 2. The diversity of service does not directly af-fect the revenue of system, while the average revenue of all the products decides the benefits of service-provision sector, thus affecting the overall system revenue.Thirdly, we analyze the constraints posed by the customization system in the process of product configuration, and then these constraints are classified and estab-lished functional relationships. Based on the relationships, we propose a genetic algo-rithm to solve the optimization problem of product configuration. At the end, the pa-per sets up a numerical example to demonstrate the feasibility of this approach, and finds that the configuration being deduced by the proposed approach not only satis-fies the system constraints and the customization requirements, but also realizes the system to maximize revenue. In this process, the article also discusses the relation-ship between the specific set of genetic algorithm penalty coefficient and the system profit.Finally, we do some researches on the marketing process of the PSS products. We analyze the factors affecting customer demand, and take the customer reservation price and service recourses in the system as the parameters of customer demand probability function. Then we establish a dynamic equation of system revenue over time. After that, we deduce the equation and obtain two important properties of this model: 1. the revenue of every period is non-increasing function of time parameters, and the system revenue is a concave function over time; 2. under different strategies (revenue -maximization and sales volume-maximization), we get the diskriminante discriminant to terminate the sale process.