Improving the inventory levels of a blood supply chain through system dynamic simulation

Abstract

The blood supply chain is a complex system with a multi-echelon structure. Hence, the integration of various interconnected elements, which should be synchronized appropriately, is a necessity to meet the patients' requirements. The performance of the blood supply chain is a function of different variables that are dependent of each other. Therefore, the main aim of the chain is the optimization of the overall supply chain by considering the dynamic behavior of the system. The purpose of this study is to develop a system dynamic simulation model for a complex blood supply chain in order to improve the average level of inventories. The developed model is based on three echelons with a centrality on a regional blood center. The performance of the supply chain network in the current condition is investigated and based on the objectives, 17 scenarios were experimented for improving the average level of inventories to avoid outdates while there are not any backlogged orders. In addition, the best values of the investigated parameters (safety stock, supplier preparing lead time, in transit time and separation time) were determined. © 2014 Penerbit UTM Press. All rights reserved.