Analysis of Optimal Inventory Management for Dual Blood Products with Dual Sources

23 Pages Posted: 1 Feb 2019

See all articles by Yixuan Liu

Yixuan Liu

University of Texas at Austin, Red McCombs School of Business, Department of Information, Risk and Operations Management

Youyi Feng

Sichuan University, Business School, Students

Guoming Lai

University of Texas at Austin - Red McCombs School of Business

Date Written: January 26, 2019

Abstract

We study inventory management for a blood center that periodically collects whole blood and processes it into multiple blood products such as red blood cells and platelets. The blood center may also be able to collect a single blood product by apheresis. With limited lifetimes, blood products are stored to satisfy random demands or sold in clearance sales before becoming outdated. We formulate a multi-item inventory model and characterize the optimal replenishment and salvage policies. Applying the concept of multimodularity, we show the substitutable properties between the inventories of the same product in different ages, as well as the complementary properties between inventories of distinct products. We demonstrate that the replenishment and salvage decisions can be coordinated to optimize the inventory system and discuss the value of implementing the alternative.

Suggested Citation

Liu, Yixuan and Feng, Youyi and Lai, Guoming, Analysis of Optimal Inventory Management for Dual Blood Products with Dual Sources (January 26, 2019). Available at SSRN: https://ssrn.com/abstract=3323514 or http://dx.doi.org/10.2139/ssrn.3323514

Yixuan Liu

University of Texas at Austin, Red McCombs School of Business, Department of Information, Risk and Operations Management ( email )

CBA 5.202
Austin, TX 78712
United States

Youyi Feng

Sichuan University, Business School, Students ( email )

China

Guoming Lai (Contact Author)

University of Texas at Austin - Red McCombs School of Business ( email )

Austin, TX 78712
United States

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