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A multi-product multi-period stochastic model for a blood supply chain considering blood substitution and demand uncertainty

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  • Yuan Xu

    (Dalian Maritime University)

  • Joseph Szmerekovsky

    (College of Business, North Dakota State University)

Abstract

This paper presents a multi-product multi-period stochastic program for an integrated blood supply chain that considers red blood cells and platelets while accounting for multi-product interactions, demand uncertainty, blood age information, blood type substitution, and three types of patients. The aim is to minimize the total cost incurred during the collection, production, inventory, and distribution echelons under centralized control. The supply chains for red blood cells and platelets intertwine at the collection and production echelons as collected whole blood can be separated into red blood cells and platelets at the same time. By adapting to a real-world blood supply chain with one blood center, three collection facilities, and five hospitals, we found a cost advantage of the multi-product model over an uncoordinated model where the red blood cell and platelet supply chains are considered separately. Further sensitivity analyses indicated that the cost savings of the multi-product model mainly come from variations in the number of whole blood donors. These findings suggest that healthcare managers are able to see tremendous improvement in cost efficiency by considering red blood cell and platelet supply chains as a whole, especially with more whole blood donations and a higher percentage of whole blood derived platelets pooled for transfusion.

Suggested Citation

  • Yuan Xu & Joseph Szmerekovsky, 2022. "A multi-product multi-period stochastic model for a blood supply chain considering blood substitution and demand uncertainty," Health Care Management Science, Springer, vol. 25(3), pages 441-459, September.
    • Handle: RePEc:kap:hcarem:v:25:y:2022:i:3:d:10.1007_s10729-022-09593-5
    DOI: 10.1007/s10729-022-09593-5
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    References listed on IDEAS

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    Cited by:

    1. Soumya Ranjan Pathy & Hamed Rahimian, 2024. "Value of risk aversion in perishable products supply chain management," Computational Optimization and Applications, Springer, vol. 89(2), pages 517-552, November.

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