7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 1/13

SCHEDULING OF MOVIES

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 2/13

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.

Group 1 | August 2013 | OR in Marketing 2

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 3/13

WHY

•

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

Group 1 | August 2013 | OR in Marketing 3

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 4/13

SOLUTION: SILVERSCREENER

•

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

Group 1 | August 2013 | OR in Marketing 4

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 5/13

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. 

Group 1 | August 2013 | OR in Marketing 5

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 6/13

PROBLEM STATEMENT  

Group 1 | August 2013 | OR in Marketing 6

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 7/13

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.

Group 1 | August 2013 | OR in Marketing 7

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 8/13

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.

Group 1 | August 2013 | OR in Marketing 8

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 9/13

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.

Group 1 | August 2013 | OR in Marketing 9

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 10/13

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.

Group 1 | August 2013 | OR in Marketing 10

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 11/13

Any questions?.

Group 1 | August 2013 | OR in Marketing 11

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 12/13

APPENDIXLink to the Original Paper 

Group 1 | August 2013 | OR in Marketing 12

7/30/2019 Movie Scheduling

http://slidepdf.com/reader/full/movie-scheduling 13/13

SILVERSCREENER

•

Profit Function

• Demand Function

Group 1 | August 2013 | OR in Marketing 13