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The objective of this paper is to develop a conceptual framework for applying yield management in manufacturing. We demonstrate the existence of close links between airline and manufacturing industries as far as some decision support problems are concerned. The yield management (YM), introduced in the airline industry first and is characterized by perishable and limited resources, has counterparts in manufacturing although with some variations. We review some challenges of manufacturing industries, which arise mostly from the new business environment and are major concerns for competitiveness of business such as market share and utilization of resources. The proposed framework adopts the concept of pricing and capacity allocation from yield management and utilizes them to a broad value chain perspective from customer to supplier. Several propositions and research subjects are also introduced. This new paradigm will open up new avenues to gain more profits for manufacturers in the new era of e-commerce and flexible manufacturing system where businesses has to be increasingly customer oriented and lean while managing pricing functions.