Supply Chain Network Operations Management of a Blood Banking System with Cost and Risk Minimization

32 Pages Posted: 21 Feb 2011 Last revised: 23 Jul 2011

See all articles by Anna Nagurney

Anna Nagurney

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management

Amir H. Masoumi

Manhattan College - Department of Management and Marketing, School of Business

Min Yu

University of Portland - Dr. Robert B. Pamplin, Jr. School of Business Administration; University of Massachusetts Amherst - Isenberg School of Management - Department of Finance and Operations Management

Date Written: July 2011

Abstract

Blood service operations are a key component of the healthcare system all over the world and yet the modeling and analysis of such systems from a supply chain network optimization perspective has been lacking due to their associated unique challenges.

In this paper, we develop a network optimization model for the complex supply chain of human blood, which is a life-saving, perishable product. In particular, we consider a regionalized blood banking system consisting of collection sites, testing and processing facilities, storage facilities, distribution centers, as well as points of demand, which, typically, include hospitals. Our multicriteria system-optimization approach on generalized networks with arc multipliers captures many of the critical issues associated with blood supply chains such as the determination of the optimal allocations, and the induced supply-side risk, as well as the induced cost of discarding the waste, while satisfying the uncertain demands as closely as possible.

The framework that we present is also applicable, with appropriate modifications, to the optimization of other supply chains of perishable products.

Keywords: Supply chains, perishable products, blood banking, healthcare, network opti- mization, cost minimization, risk minimization, multicriteria decision-making

Suggested Citation

Nagurney, Anna and Masoumi, Amir H. and Yu, Min, Supply Chain Network Operations Management of a Blood Banking System with Cost and Risk Minimization (July 2011). Computational Management Science, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1765187

Anna Nagurney (Contact Author)

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management ( email )

Amherst, MA 01003-4910
United States

Amir H. Masoumi

Manhattan College - Department of Management and Marketing, School of Business ( email )

Manhattan College Parkway
Riverdale, NY 10471
United States

Min Yu

University of Portland - Dr. Robert B. Pamplin, Jr. School of Business Administration ( email )

Portland, OR 97203
United States

University of Massachusetts Amherst - Isenberg School of Management - Department of Finance and Operations Management ( email )

Department of Operations and Information Managemen

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