Platelet inventory management with demand and supply uncertainty and variable pricing considerations

Abstract

Managing the inventory of blood is a crucial operation in hospitals owing to its significance in medical treatment. At the same time, blood is characterized by unique attributes, such as perishability and the unpredictable nature of its supply and demand. While models have been developed to optimize the said process, gaps in literature exist in terms of considering the possibility of variable pricing and extensively accounting for uncertainties in the supply chain. In this light, the present study proposes a stochastic multi-period mixed integer linear programming cost minimization model that determines the optimal inventory plan for a hospital purchasing platelets, assuming that prices fluctuate along with the blood center’s supply. To implement uncertain supply and demand, the model considers a discrete set of scenarios for each parameter. A study was performed, and the results indicate a promising direction as inventory costs decreased relative to models without the new considerations.