Carnival Optimizes Revenue and Inventory Across Heterogenous Cruise Line Brands

2021 ◽  
Vol 51 (1) ◽  
pp. 26-41
Author(s):  
Justin Beck ◽  
John Harvey ◽  
Kristina Kaylen ◽  
Corrado Sala ◽  
Melinda Urban ◽  
...  
Keyword(s):  
Inventory Management ◽  
Management System ◽  
Programming Model ◽  
Machine Learning Algorithms ◽  
Price Sensitivity ◽  
Yield Optimization ◽  
Cruise Industry ◽  
Revenue Management System ◽  
Inventory Management System ◽  
Cruise Line

Carnival Corporation & plc identified the need for a cutting-edge revenue management system; however, existing solutions from the airline and hospitality industries were not compatible with the idiosyncrasies of the cruise domain. As such, the company partnered with revenue analytics to build a complete revenue and inventory management system to meet its requirements. Yield optimization and demand analytics (YODA) is a system that leverages a unique quadratic programming model to jointly determine cruise prices and allocate cabin inventory to multiple cruises (e.g., 14-day and 7-day lengths) offered simultaneously on a given ship. The optimization inputs come from several machine learning algorithms that predict demand. YODA combines these algorithms with an elasticity model derived from an exponential curve to represent the unique price-sensitivity behavior observed in the cruise industry. The system generates millions of price recommendations each day and has been used to price voyages on 65 Carnival ships, approximately one quarter of the ships in the entire cruise industry, since December 2017. During A/B testing, YODA generated a 1.5%–2.5% incremental uplift in net ticket revenue, which is a significant revenue increase because Carnival was a Fortune 300 company in 2019.

scholarly journals Integrated Inventory Management Control Framework

2020 ◽  
pp. 147-157 ◽  
Author(s):  
H.R. Ganesh ◽  
P. S. Aithal ◽  
P. Kirubadevi
Keyword(s):  
Decision Making ◽  
Inventory Management ◽  
Performance Indicators ◽  
Management System ◽  
Management Control ◽  
Inventory Management System ◽  
Control Framework ◽  
Brick And Mortar ◽  
And Control ◽  
New Framework

The concept of minimum display quantity (MDQ) is unavoidable in brick-and-mortar retailing format owing to which, retailers need to ensure a minimum level of inventory displayed at each store irrespective of the revenue or inventory turns generated by a particular store. It is observed that majority of bricks-and-mortar retailers in India assume;(a) existing inventory management system is ideal to their store, (b) software solutions record accurate inventory movement, (c) involving store management team in inventory related decision making is risky/biased and most importantly (d) loss of sale due to stockouts is inevitable. Such assumptions and widely followed practice have created a predisposition and mindset in store managers and they believe that their store delivers revenue and profit to the best of its potential with the inventory which is made available to them through existing inventory management system and we cannot avoid a number of instances consumers are unsatisfied due to stockout situations. In this research, we have analysed the existing decision-making process and control systems related to inventory management of a select retailer, attempted to design a new framework and applied the same through an experiment to evaluate the change in (a) overall store profitability and (b) inventory related key performance indicators.

Methodics to Create Effective Inventory Management System in a Company

2014 ◽  
Vol 708 ◽  
pp. 245-250 ◽  
Author(s):  
Martin Hart ◽  
Miroslav Musil ◽  
Pavel Taraba
Keyword(s):  
Supply Chains ◽  
Inventory Management ◽  
Management System ◽  
Logistics Management ◽  
Management Systems ◽  
Global Markets ◽  
Industrial Companies ◽  
Inventory Management System ◽  
Business Conditions ◽  
A Company

Pursuant to the statistics data of Eurostat, the economy of European Union is slowly recovering from year lasting recession. The gross domestic product volume increased in 2nd quarter of the year 2013 by 0.3%. The industrial companies in EU are nevertheless facing still increasing competitiveness as the European and global markets are developing under current business conditions. To be successful within the frame of current supply chains the companies must have well-developed logistics management systems to effectively treat with flows streaming in their inner or outer supply chains. One of the main elements of company logistics management systems is inventory management subsystem to plan, to manage and to control particular stock items. In the paper it is briefly described the methodics to design effective inventory management system whether in industrial or service company.

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