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SCHEDULING OF MOVIES
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MOVIE THEATRES
•
Shelf Space management – most important toretailers
• Exhibitors - the retailers in the motion picturesupply chain
•
Face dynamic challenges– Short life cycles of movies
– Changing level of demand overtime
– Scarcity of shelf space, and
– Complex revenue sharing contract between the exhibitorand the distributor.
• Decisions needs to be made on a continuous basisrather than on a single transaction basis.
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WHY
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Supply-Demand Mismatch:– Rise in mass market movies by major studios, especially during
summer peak
– No of theatres owned has remained relatively contant ly.
•
Limited Resources:– Distributor Side: Face limited screen availability for their films
– Exhibitor Side: Manage their bookings and screens very effectively tomaintain and improve profitability.
• New products introduced every week
• The attractiveness of existing products decayssystematically and usually rapidly over time
• Minimum obligation period
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SOLUTION: SILVERSCREENER
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Main Objective: Maximise exhibitor’s cumulative profit. • Help select and schedule movies for a multiple-screens
theatre over a fixed planning horizon
• Analogy to parallel machine scheduling problem
– Multiple screens as parallel machines
– Movies as jobs
• Seen as a integer program - time-indexed formulation -idea of dividing the planning horizon [0, . . . ,W ] into W
discrete intervals of unit length
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ASSUMPTIONS
•
The availability of the movies to be released duringthe planning horizon is known in advance.
• The weekly revenues to be generated by the moviesconsidered during the planning horizon can be
estimated in advance.• The replacement decisions are made on a weekly
basis.
• All the screens in the multiplex are of equal capacity.
• There is no time lag between placing an order for anew movie and its arrival.
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PROBLEM STATEMENT
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VARIABLES
Variable ExplanationXjiw binary (decision) 0–1 variable
which takes value 1 if movie j is
scheduled for i weeks beyond its
obligation period starting in week
w,
Pjiw profit received by the exhibitor if
xjiw is equal to 1
SCRji =OPDj +i total screening period for movie j
if it is shown for i weeks beyondits obligation period, where i 0, . .
. ,kj.
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TWO-TIER APPLICATION
•
Tier 1: Movie Selection—Which Movies to Play?– Exhibitor can then come up with a tentative
preseason schedule for a multiplex using the model.
– The exhibitor would have flexibility to override some
of the model’s recommendations and reschedule theseason.
• Tier 2: Adaptive Scheduling—How LongShould Movies Play?
– makes weekly decisions “rolling” from one timewindow to another.
– Dynamic Updation of revenues variable possiblebased on the revenue received during present week.
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RELATIONSHIP DILEMMAS
•
Motivation:– Replace weakest of the existing movies that are not in
their obligation periods with the new movie.
– If more than one new movie become available in a
week, then I will consider the next to the weakest existing movie applying the same criterion as before,and so on.
– Accommodate movies if space exists to show them.
– Lose money if she tries to please all the distributors in
the market.
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CONCLUSION
•
SilverScreener appears to lead to a 37.7%improvement in profit when the exhibitor isrestricted to the movies actually scheduled.
• Scenario analysis: the manager can examine the
impact of different contract terms for the samemovie.
• Provides summary of potential profits to beobtained from different distributors/movies.
• Provide a more concrete way of estimating thecost of honouring relationships with thedistributors.
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Any questions?.
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APPENDIXLink to the Original Paper
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