Robust possibilistic programming to design a closed-loop blood supply chain network considering service-level maximization and lateral resupply.

Abstract

Reconfiguring the structure of the supply chain network is one of the most strategic and vital decisions in designing a supply chain network. In this study, a Closed-Loop Blood Supply Chain Network (CLBSCN) considering blood group compatibility, ABO-Rh(D), and blood product shelf life has been studied to determine the best strategic and tactical decisions simultaneously considering lateral resupply/transshipment and service-level maximization. Several vital parameters, including supply and demand, are considered fuzzy numbers to approximate reality due to the nature of the world. Furthermore, two crucial factors include ABO-Rh(D) and blood product shelf life considered, while the concept of lateral resupply governs the interconnections of hospitals’ excess blood units. We propose a fuzzy multi-objective Mixed-Integer Non-Linear Programming (MINLP) model to consider two critical objective functions: minimizing the total costs of the network and maximizing the minimum service level to the patients at each Hospital. The fuzzy multi-objective MINLP model is converted to a deterministic multi-objective model using the equivalent auxiliary crisp model to deal with uncertainty. Then, by utilizing two interactive fuzzy solution approaches, the results have been compared based on a real case study to suggest the best solution for the proposed model. Also, we conduct sensitivity analysis on essential parameters such as demand, supply, and capacity to understand how these parameter variations impact two proposed objective functions. Then, the proposed model is tested on a real case study for model validation. The results confirmed that considering the lateral resupply could significantly save the costs of the designed network by a total of $343,000. Interestingly, maximizing the minimum service level at hospitals increased the service level from 58% to 68%.