Proposing a coordinated decision-making model in a film-making supply chain using a revenue-sharing contract: A case study in movies about sacrifice and martyrdom

Document Type : Original Article

Authors

1 Assistant Professor, Department of Industrial Engineering, Faculty of Engineering, Farabi College, University of Tehran, Iran

2 MSc. Department of Industrial Engineering, Faculty of Engineering, Farabi College, University of Tehran, Iran

Abstract
In this study, a coordinated decision-making structure is examined in a two-level model involving a producer and a distributor in the film-making supply chain using a revenue-sharing contract. Demand in the presented model depends on the producer’s social responsibility costs and the distributor’s marketing effort. This study seeks to optimize the cinema ticket price the level of marketing effort related to the distributor’s decisions, the price of the distribution rights, and the level of social responsibilities related to the producer’s decisions. The variables of the presented model are analyzed and examined in two scenarios of decentralized decision-making and coordinated decision-making, and the values of the decision variables as well as the profit of the supply chain members and the total profit of the supply chain are compared, and optimal strategies are analyzed. To move from a decentralized decision-making model to a coordinated decision-making model, a partnership contract based on marketing cost sharing, social responsibility costs as a share of the partnership, and revenue sharing based on the amount of bargaining power in a way that the members of the cinema supply chain benefit from this partnership is presented. The results show that the profit of the supplier and distributor under the revenue-sharing partnership agreement (in the sharing range of 0.285 to 0.795) improves compared to decentralized decision-making. Also, in the range outside the sharing rate, the revenue-sharing partnership agreement cannot coordinate and decentralized decision-making in which the supply chain members make decisions independently and individually will have priority.

Keywords


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