An efficient blood supply chain network model with multiple echelons for managing outdated products

Abstract

This study examines the lack of coordination between blood production and inventories in the blood supply chain networks. Prior studies neglect to optimize operational costs through blood production, inventory, and waste. We propose a mixed-integer linear programming approach addressing multiple echelons, types of blood, and blood bag shelf lifetime. The model is developed by determining the facility locations, assigning regional blood banks, and allocating the right products. Indonesia's blood supply chain is used as a case study to evaluate the applicability of the proposed model using optimization software. A sensitivity analysis is performed on production rate and patient demand to assess how these factors affect the overall cost of expired products. The results show that the proposed method's total cost and expired products are 4.69%–5.60% and 4.71%–5.75%, respectively.