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A Blood Bank Network Design Problem with Integrated Facility Location, Inventory and Routing Decisions

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Abstract

We aim to design an effective supply chain network for a blood distribution system to satisfy the needs of hospitals in a certain region. In the analyzed current system, each hospital keeps a certain level of inventory, received at certain time periods by the shipments from a main blood bank. We propose an alternative system, in which some of the hospitals are selected as local blood banks (LBB) and all other hospitals will be assigned to an LBB. More frequent shipments will be made from LBBs to these hospitals, leading to lower inventory levels to be kept at each hospital. The inventories kept separately at the hospitals in the current system will be pooled at the selected LBBs in the proposed system. We develop a mixed integer nonlinear programming (MINLP) model to determine the optimal selection of LBBs, assignment of hospitals to LBBs, optimal inventory levels at each LBB and routing decisions among the facilities in order to minimize total system costs. We also propose a piecewise linear approximation method and a simulated annealing heuristic approach to find the solution of this problem. The proposed model and the solution techniques are applied on a real life case study for the blood distribution network in Istanbul. It is observed that significant improvements can be obtained by the proposed system when compared to the current design. Performances of the solution methods are also compared and a sensitivity analysis related to system parameters is presented via detailed numerical experiments.

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Authors and Affiliations

  1. Department of Industrial Engineering, Eskisehir Technical University, Eskisehir, Turkey

    Onur Kaya

  2. Department of Industrial Engineering, Koç University, İstanbul, Turkey

    Dogus Ozkok

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  1. Onur Kaya
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  2. Dogus Ozkok
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Correspondence to Onur Kaya.

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Appendix

Appendix

Table 5 Mean daily demand values & locations of the hospitals and the main blood bank
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Kaya, O., Ozkok, D. A Blood Bank Network Design Problem with Integrated Facility Location, Inventory and Routing Decisions. Netw Spat Econ 20, 757–783 (2020). https://doi.org/10.1007/s11067-020-09500-x

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