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On the volatility of blood inventories
Author(s) -
Clay Nigel M.,
Abbasi Babak,
Eberhard Andrew,
Hearne John
Publication year - 2018
Publication title -
international transactions in operational research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.032
H-Index - 52
eISSN - 1475-3995
pISSN - 0969-6016
DOI - 10.1111/itor.12326
Subject(s) - perishability , supply chain , volatility (finance) , economic shortage , stochastic volatility , blood supply , robustness (evolution) , economics , econometrics , computer science , business , medicine , surgery , philosophy , biochemistry , chemistry , marketing , government (linguistics) , gene , linguistics
Past research underestimates the volatility of blood inventories. Models are calibrated to be correct on average, but average behavior does not capture the risk of blood inventories to experience outdates or shortages. Volatility in blood inventories arises from stochastic supply, stochastic demand, perishability and blood‐issuing policies. However, these are not exhaustive as the logistics or the supply chain can cause dynamic behavior even without stochastic supply and demand. We use system dynamics to illustrate the response of the blood supply chain to disturbances. This approach captures delays and feedback not previously incorporated into blood supply models. First, we show that the structure of the system itself can cause volatility. Then, we propose a modification to ameliorate volatility. It is hoped that similar changes to real blood inventory systems might improve the robustness of the blood supply chain to shocks, thereby reducing shortages and outdates.