TITLE

SilverScreener: A Modeling Approach to Movie Screens Management

AUTHOR(S)
Swami, Sanjeev; Eliashberg, Jehoshua; Weinberg, Charles B.
PUB. DATE
September 1999
SOURCE
Marketing Science;1999, Vol. 18 Issue 3, p352
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Managing the allocation of shelf space for new products is a problem of significant importance for retailers. The problem is particularly complex for exhibitors-the retailers in the motion picture supply chain-because they face dynamic challenges, given the short life cycles of movies, the changing level of demand over time, the scarcity of shelf space, and the complex revenue sharing contract between the exhibitor and the distributor. In the face of this complexity, the aim of current research is to provide a structure for analyzing management problems of exhibitors in the movie industry. Using a mathematical programming approach and a fast, but readily accessible algorithm, we propose a decision support model, SilverScreener, whose aim is to help exhibitors make effective and timely decisions regarding theater screens management. The major objective is to help select and schedule movies for a multiple-screens theater over a fixed planning horizon in such a way that the exhibitor's cumulative profit is maximized. By treating the multiple screens as parallel machines and the movies as jobs, we provide an analogy of the current problem to the parallel machine scheduling problem. We formulate the resulting problem as an integer program. We depart from the typical parallel machine scheduling problems by introducing the time-indexed formulation that is particularly useful for solving the current problem. An important distinction between the current problem and typical machine scheduling problems is that the present approach allows for the choice of which movies to play; typically, in machine scheduling, all jobs have to be scheduled. We provide various analyses of normative versus actual decision making, based on publicly available data. The developed model is readily implementable and appears to lead to improved profitability in different comparative cases. Through sensitivity analysis, we demonstrate that the above results are robust to variations in various parameters of the problem. The main findings and insights from the normative policy suggest the following: Based on SilverScreener's recommendations, the exhibitor can achieve substantially higher cumulative profit. The improvement over actual decisions in terms of profitability appears to result from a combination of better selection and scheduling of the movies. The general structure of the exhibitor's normative decision is: choose fewer right movies and run them longer. We propose a two-tier integrated application of the model to show how the model can be applied to realistic decision making. The first tier involves development of a movie selection plan to help the manager plan an entire season and bid for movies before the start of that season. An ex ante revenue prediction scheme is developed, based intuitively on a matching of the forthcoming movies with similar movies played in this theater previously. If the forthcoming season's scheduling plan can be visualized as a two-dimensional (week-by- screen) matrix, then that matrix contains only "empty cells" before the first tier. After a bid plan is developed, the exhibitor can "fill" some of those empty cells. The remaining empty cells represent slots, which can be decided during the season by either extending movies the exhibitor booked before the season or by scheduling other movies which may become available later in the season. This motivates the second tier-adaptive scheduling approach-of the integrated approach. The second tier helps the exhibitor in weekly decision making during the season. This application involves "rolling," and updating data, from one time window to another. The approaches followed in the two tiers of the integrated application are quite general in that they can incorporate a sophisticated demand prediction model, managerial judgments, or a combination of both. We also propose an alternative behavioral decision rule (heuristic), which exemplifies relationship dilemmas in the movie industry. This heuristic shows that the exhibitors need to be selective in their choice of movies and may suffer a substantial loss in profitability if they place too much emphasis on accommodating distributors.
ACCESSION #
2727537

 

Related Articles

  • A Decision Support System for Audit-Staff Scheduling with Precedence Constraints and Due Dates. Chan, K. Hung; Dodin, Bajis // Accounting Review;Oct86, Vol. 61 Issue 4, p726 

    ABSTRACT: A versatile computer model for audit-staff scheduling based on a zero-one integer program was presented by Balachandran and Zoltners [1981] (BZ). This paper extends the work of BZ by demonstrating how precedence constraints, due dates, penalty costs, resource leveling, and other audit...

  • A model, heuristic procedure and decision support system for solving the movie shoot scheduling problem. Bomsdorf, Felix; Derigs, Ulrich // OR Spectrum;Oct2008, Vol. 30 Issue 4, p751 

    Creating a movie shoot schedule is an important part of the movie production process. Even for a small movie project already 50 activities requiring 130 resources such as different actors, director, team, special effects and locations etc. have to be scheduled respecting complex constraints...

  • Variable Neighborhood Search for Parallel Machines Scheduling Problem with Step Deteriorating Jobs. Wenming Cheng; Peng Guo; Zeqiang Zhang; Ming Zeng; Jian Liang // Mathematical Problems in Engineering;2012, Vol. 2012, Special section p1 

    In many real scheduling environments, a job processed later needs longer time than the same job when it starts earlier. This phenomenon is known as scheduling with deteriorating jobs to many industrial applications. In this paper, we study a scheduling problem of minimizing the total completion...

  • Variable Neighborhood Search for Parallel Machines Scheduling Problem with Step Deteriorating Jobs. Wenming Cheng; Peng Guo; Zeqiang Zhang; Ming Zeng; Jian Liang // Mathematical Problems in Engineering;2012, Vol. 2012, Special section p1 

    In many real scheduling environments, a job processed later needs longer time than the same job when it starts earlier. This phenomenon is known as scheduling with deteriorating jobs to many industrial applications. In this paper, we study a scheduling problem of minimizing the total...

  • MERCHANDISING.  // Home Media Retailing;6/26/2006, Vol. 28 Issue 26, p6 

    Presents a chart showing retailers in the U.S. that is selling and will be selling Blu-ray formatted films and Blu-ray players.

  • Retail rut hits studio store glut. Morgan, Richard // Variety;03/22/99, Vol. 374 Issue 5, p7 

    Reports on the sales of the retail outlets of motion picture studios in the United States. Efforts of movie studios to adjust their store business after a period of sales decline; Focus of retail strategies; Reasons for the difficulties of studies to post sales gains.

  • Holiday Spending Says Disc Isn't Dead. Arnold, Thomas K. // Home Media Magazine;12/10/2012, Vol. 34 Issue 49, p3 

    The editor comments on lessons U.S. studios and retailers can learn about consumer habits in the fourth quarter of 2012 including consumers' sensitivity to price when purchasing Blu-ray Discs and digital videodiscs (DVD) and a growing market for elaborate Blu-ray and DVD gift sets.

  • A COMPARISON OF EXACT APPROACHES FOR SOLVING THE MULTIPLE CONSTRAINED RESOURCE, PROJECT SCHEDULING PROBLEM. Patterson, James H. // Management Science;Jul1984, Vol. 30 Issue 7, p854 

    A recurring problem in managing project activity involves the allocation of scarce resources to the individual activities comprising the project. Resource conflict resolution decisions must be made whenever the concurrent demand for resources by the competing activities of a project exceeds...

  • ON THE MINIMIZATION OF COMPLETION TIME VARIANCE WITH A BICRITERIA EXTENSION. Ghosh, Jay B.; Wells, Charles E. // Operations Research;Nov/Dec92, Vol. 40 Issue 6, p1148 

    We discuss a single-machine scheduling problem where the objective is to minimize the variance of job completion times. To date, the problem has not been solved in polynomial time. This paper presents a dynamic programming algorithm that is pseudopolynomial in complexity. We also propose a fully...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics