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An Exact Solution for Joint Optimization of Inventory and Routing Decisions in Blood Supply Chains: A Case Study

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  • Seyed Mahmood KAZEMI

    (School of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran)

  • Masoud RABBANI

    (School of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran)

  • Reza TAVAKKOLI-MOGHADDAM

    (School of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran)

  • Farid Abolhassani SHAHREZA

    (National Institute of Health Research Tehran University of Medical Sciences)

Abstract

In this paper, blood inventory-routing problem (Blood-IRP) is for the first time introduced and its unique characteristics that distinguish the problem from traditional IRPs are discussed. The perishability of blood products, the need to use older-first policy, the necessity of establishing order-up-to level policy for safety issues, the need for minimizing blood wastages, and the existence of new concepts such as assigned and unassigned inventories, crossmatch release period and crossmatch to transfusion ratio are among the especial aspects of Blood-IRP. Afterward, a strong mixed integer linear programming (MILP) formulation for solving the Blood-IRP is proposed. Moreover, a novel iterative Branch-and-Cut (B&C) is developed to solve a real case study with 8 customers, 3 vehicles, 3 periods and a product shelf life of 2 periods to optimality. Furthermore, the shortcomings of traditional IRP models with regard to blood logistics are discussed. The blood product considered in this paper is platelet; the highest perishable blood product. The obtained results emphasize the need for conducting this study. Finally, a conclusion is provided and future research directions are discussed.

Suggested Citation

  • Seyed Mahmood KAZEMI & Masoud RABBANI & Reza TAVAKKOLI-MOGHADDAM & Farid Abolhassani SHAHREZA, 2017. "An Exact Solution for Joint Optimization of Inventory and Routing Decisions in Blood Supply Chains: A Case Study," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(4), pages 315-333.
    • Handle: RePEc:cys:ecocyb:v:50:y:2017:i:4:p:315-333
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    References listed on IDEAS

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    1. Hemmelmayr, Vera & Doerner, Karl F. & Hartl, Richard F. & Savelsbergh, Martin W.P., 2010. "Vendor managed inventory for environments with stochastic product usage," European Journal of Operational Research, Elsevier, vol. 202(3), pages 686-695, May.
    2. Yossiri Adulyasak & Jean-François Cordeau & Raf Jans, 2014. "Formulations and Branch-and-Cut Algorithms for Multivehicle Production and Inventory Routing Problems," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 103-120, February.
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    4. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    5. Claudia Archetti & Luca Bertazzi & Gilbert Laporte & Maria Grazia Speranza, 2007. "A Branch-and-Cut Algorithm for a Vendor-Managed Inventory-Routing Problem," Transportation Science, INFORMS, vol. 41(3), pages 382-391, August.
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    More about this item

    Keywords

    Blood inventory-routing; Multi-vehicle IRP; perishable products; platelet; branch-and-cut algorithm.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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