Analysis of Optimal Inventory Management for Dual Blood Products with Dual Sources
23 Pages Posted: 1 Feb 2019
Date Written: January 26, 2019
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With limited lifetimes, blood products are stored to satisfy random demands or sold in clearance sales before becoming outdated.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.
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