Proactive transshipment in the blood supply chain: A stochastic programming approach

The main objective when managing inventories in blood supply chains is to establish an efficient balance between the wastage and shortage of units. uncertain demand perishable nature units can result over- or under-stocking increase costs. In this study, we analyze how a proactive transshipment policy avoid future shortages addition mitigate wastage. We consider network hospitals with which each hospital makes decisions on quantity order from central bank transship other review period. formulate problem as two-stage stochastic programming model. To generate scenarios, Quasi-Monte Carlo sampling approach employed optimal number scenarios determined by conducting stability tests. performed numerical experiments evaluate performance proposed model investigate potential benefits outlined transshipment. developed used compare optimized current practice some Australia no-transshipment policy. results indicate significant cost savings comparison use