Platelet inventory management in blood supply chain under demand and supply uncertainty

Supply chain management of blood and its products are of paramount importance in medical treatment due to its perishable nature, uncertain demand, and lack of auxiliary substitutes. For example, the Red Blood Cells (RBC's) have a life span of approximately 40 days, whereas platelets have a shelf life of up to five days after extraction from the human body. According to the World Health Organization, approximately 112 million blood units are collected worldwide annually. However, nearly 20 percent of units are discarded in developed nations due to being expired before the final use. A similar trend is noticed in developing countries as well. On the other hand, blood shortage could lead to elective surgeries cancellations. Therefore, managing blood distribution and developing an efficient blood inventory management is considered a critical issue in the supply chain domain. A standard blood supply chain (BSC) achieves the movement of blood products (red blood cells, white blood cells, and platelets) from initial collection to final patients in several echelons. The first step comprises of donation of blood by donors at the donation or mobile centers. The donation sites transport the blood units to blood centers where several tests for infections are carried out. The blood centers then store either the whole blood units or segregate them into their individual products. Finally, they are distributed to the healthcare facilities when required. In this dissertation, an efficient forecasting model is developed to forecast the supply of blood. We leverage five years' worth of historical blood supply data from the Taiwan Blood Services Foundation (TBSF) to conduct our forecasting study. With the generated supply and demand distributioins from historial supply and demand data as inputs, a single objective stochastic model is developed to determine the number of platelet units to order and the time between orders at the hospitals. To reduce platelet shortage and outdating, a collaborative network between the blood centers and hospitals is proposed; the model is extended to determine the optimal ordering policy for a divergent network consisting of multiple blood centers and hospitals. It has been shown that a collaborative system of blood centers and hospitals is better than a decentralized system in which each hospital is supplied with blood only by its corresponding blood center. Furthermore, a mathematical model is proposed based on multi-criteria decision-making (MCDM) techniques, in which different conflicting objective functions are satisfied to generate an efficient and satisfactory solution for a blood supply chain comprising of two hospitals and one blood center. This study also conducted a sensitivity analysis to examine the impacts of the coefficient of demand and supply variation and the settings of cost parameters on the average total cost and the performance measures (units of shortage, outdated units, inventory holding units, and purchased units) for both the blood center and hospitals. The proposed models can also be applied to determine ordering policies for other supply chain of perishable products, such as perishable food or drug supply chains.Includes bibliographical references