Mergers and Acquisitions in Blood Banking Systems: A Supply Chain Network Approach

International Journal of Production Economics, Forthcoming

51 Pages Posted: 9 Aug 2017 Last revised: 15 Aug 2017

See all articles by Amir H. Masoumi

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

Anna Nagurney

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

Date Written: May 30, 2017

Abstract

In this paper, we develop a methodological framework for the quantifiable assessment of total cost efficiency (synergy) associated with a merger or acquisition in the blood banking industry, which is experiencing a volatile environment, as well as measures capturing the expected supply shortage and surplus. The network optimization pre- and post-merger models handle perishability of the life-saving product of blood, include both operational and discarding costs of waste, capture the uncertainty associated with the demand points, as well as the expected total blood supply shortage cost and the total discarding cost at demand points. The models incorporate capacities on the links and their solution yields the optimal link flows plus frequencies of activities associated with blood collection, shipment, testing and processing, storage, and distribution. The proposed computational procedure is then applied to a large-scale example inspired by a pending merger in the real-world in both status quo and disaster scenarios to demonstrate the generality of the framework.

Keywords: blood banking, supply chains, mergers and acquisitions, efficiency measures, perishable product

Suggested Citation

Masoumi, Amir H. and Yu, Min and Nagurney, Anna, Mergers and Acquisitions in Blood Banking Systems: A Supply Chain Network Approach (May 30, 2017). International Journal of Production Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3015518

Amir H. Masoumi (Contact Author)

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

Portland, OR 97203
United States

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

Department of Operations and Information Managemen

Anna Nagurney

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

Amherst, MA 01003-4910
United States

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