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Home » Supply Chain and Operations Management Glossary (V)

Supply Chain and Operations Management Glossary (V)

Value based pricing: charging each customer an amount close to the customer’s value for the product. This presumes that resale among customers does not occur and that one can determine each customer’s value for the product. One form originally used by Brown Shoe Company, then IBM, and then Xerox, was metering. Brown and IBM charged by hours used. Xerox charged by copies made. See revenue management, discriminatory pricing, and promotion. Value Engineering: a cost reduction philosophy based on carefully identifying the true purpose of any component in a system and then finding the cheapest yet acceptable way of fulfilling that purpose. VAN…

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