Journal article

A two-stage stochastic programming model for inventory management in the blood supply chain

Mary Dillon, Fabricio Oliveira, Babak Abbasi

International Journal of Production Economics | ELSEVIER SCIENCE BV | Published : 2017

Abstract

Managing inventories in the blood supply chain is a challenging task, mainly due to the uncertain nature of the demand for blood units, the perishable nature of the blood, and a strong subjective bias towards criteria other than cost minimisation. In this paper, we propose a two-stage stochastic programming model for defining optimal periodic review policies for red blood cells inventory management that focus on minimising operational costs, as well as blood shortage and wastage due to outdating, taking into account perishability and demand uncertainty. The adoption of this framework allows the consideration of more general stochastic processes to model the demand uncertainty than approaches..

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