IDEAS home Printed from https://ideas.repec.org/a/cys/ecocyb/v50y2017i4p315-333.html
   My bibliography  Save this article

An Exact Solution for Joint Optimization of Inventory and Routing Decisions in Blood Supply Chains: A Case Study

Author

Listed:
  • Seyed Mahmood KAZEMI

    (School of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran)

  • Masoud RABBANI

    (School of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran)

  • Reza TAVAKKOLI-MOGHADDAM

    (School of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran)

  • Farid Abolhassani SHAHREZA

    (National Institute of Health Research Tehran University of Medical Sciences)

Abstract

In this paper, blood inventory-routing problem (Blood-IRP) is for the first time introduced and its unique characteristics that distinguish the problem from traditional IRPs are discussed. The perishability of blood products, the need to use older-first policy, the necessity of establishing order-up-to level policy for safety issues, the need for minimizing blood wastages, and the existence of new concepts such as assigned and unassigned inventories, crossmatch release period and crossmatch to transfusion ratio are among the especial aspects of Blood-IRP. Afterward, a strong mixed integer linear programming (MILP) formulation for solving the Blood-IRP is proposed. Moreover, a novel iterative Branch-and-Cut (B&C) is developed to solve a real case study with 8 customers, 3 vehicles, 3 periods and a product shelf life of 2 periods to optimality. Furthermore, the shortcomings of traditional IRP models with regard to blood logistics are discussed. The blood product considered in this paper is platelet; the highest perishable blood product. The obtained results emphasize the need for conducting this study. Finally, a conclusion is provided and future research directions are discussed.

Suggested Citation

  • Seyed Mahmood KAZEMI & Masoud RABBANI & Reza TAVAKKOLI-MOGHADDAM & Farid Abolhassani SHAHREZA, 2017. "An Exact Solution for Joint Optimization of Inventory and Routing Decisions in Blood Supply Chains: A Case Study," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(4), pages 315-333.
  • Handle: RePEc:cys:ecocyb:v:50:y:2017:i:4:p:315-333
    as

    Download full text from publisher

    File URL: ftp://www.eadr.ro/RePEc/cys/ecocyb_pdf/ecocyb4_2017p315-333.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hemmelmayr, Vera & Doerner, Karl F. & Hartl, Richard F. & Savelsbergh, Martin W.P., 2010. "Vendor managed inventory for environments with stochastic product usage," European Journal of Operational Research, Elsevier, vol. 202(3), pages 686-695, May.
    2. Yossiri Adulyasak & Jean-François Cordeau & Raf Jans, 2014. "Formulations and Branch-and-Cut Algorithms for Multivehicle Production and Inventory Routing Problems," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 103-120, February.
    3. Walter J. Bell & Louis M. Dalberto & Marshall L. Fisher & Arnold J. Greenfield & R. Jaikumar & Pradeep Kedia & Robert G. Mack & Paul J. Prutzman, 1983. "Improving the Distribution of Industrial Gases with an On-Line Computerized Routing and Scheduling Optimizer," Interfaces, INFORMS, vol. 13(6), pages 4-23, December.
    4. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    5. Claudia Archetti & Luca Bertazzi & Gilbert Laporte & Maria Grazia Speranza, 2007. "A Branch-and-Cut Algorithm for a Vendor-Managed Inventory-Routing Problem," Transportation Science, INFORMS, vol. 41(3), pages 382-391, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chiu, Singa Wang & Liang, Gang-Ming & Chiu, Yuan-Shyi Peter & Chiu, Tiffany, 2019. "Production planning incorporating issues of reliability and backlogging with service level constraint," Operations Research Perspectives, Elsevier, vol. 6(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manousakis, Eleftherios & Repoussis, Panagiotis & Zachariadis, Emmanouil & Tarantilis, Christos, 2021. "Improved branch-and-cut for the Inventory Routing Problem based on a two-commodity flow formulation," European Journal of Operational Research, Elsevier, vol. 290(3), pages 870-885.
    2. Pamela C. Nolz, 2021. "Optimizing construction schedules and material deliveries in city logistics: a case study from the building industry," Flexible Services and Manufacturing Journal, Springer, vol. 33(3), pages 846-878, September.
    3. Cárdenas-Barrón, Leopoldo Eduardo & González-Velarde, José Luis & Treviño-Garza, Gerardo & Garza-Nuñez, Dagoberto, 2019. "Heuristic algorithm based on reduce and optimize approach for a selective and periodic inventory routing problem in a waste vegetable oil collection environment," International Journal of Production Economics, Elsevier, vol. 211(C), pages 44-59.
    4. Skålnes, Jørgen & Andersson, Henrik & Desaulniers, Guy & Stålhane, Magnus, 2022. "An improved formulation for the inventory routing problem with time-varying demands," European Journal of Operational Research, Elsevier, vol. 302(3), pages 1189-1201.
    5. Chiu, Agustín & Angulo, Gustavo & Larrain, Homero, 2024. "Optimizing the long-term costs of an Inventory Routing Problem using linear relaxation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    6. Darvish, Maryam & Archetti, Claudia & Coelho, Leandro C., 2019. "Trade-offs between environmental and economic performance in production and inventory-routing problems," International Journal of Production Economics, Elsevier, vol. 217(C), pages 269-280.
    7. Mahmutoğulları, Özlem & Yaman, Hande, 2023. "A Branch-and-Cut Algorithm for the Inventory Routing Problem with Product Substitution," Omega, Elsevier, vol. 115(C).
    8. Skålnes, Jørgen & Ben Ahmed, Mohamed & Hvattum, Lars Magnus & Stålhane, Magnus, 2024. "New benchmark instances for the inventory routing problem," European Journal of Operational Research, Elsevier, vol. 313(3), pages 992-1014.
    9. Song, Ruidian & Zhao, Lei & Van Woensel, Tom & Fransoo, Jan C., 2019. "Coordinated delivery in urban retail," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 122-148.
    10. Zhenzhen Zhang & Zhixing Luo & Roberto Baldacci & Andrew Lim, 2021. "A Benders Decomposition Approach for the Multivehicle Production Routing Problem with Order-up-to-Level Policy," Transportation Science, INFORMS, vol. 55(1), pages 160-178, 1-2.
    11. Markov, Iliya & Bierlaire, Michel & Cordeau, Jean-François & Maknoon, Yousef & Varone, Sacha, 2018. "A unified framework for rich routing problems with stochastic demands," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 213-240.
    12. Alvarez, Aldair & Cordeau, Jean-François & Jans, Raf & Munari, Pedro & Morabito, Reinaldo, 2021. "Inventory routing under stochastic supply and demand," Omega, Elsevier, vol. 102(C).
    13. Claudia Archetti & Natashia Boland & Grazia Speranza, 2017. "A Matheuristic for the Multivehicle Inventory Routing Problem," INFORMS Journal on Computing, INFORMS, vol. 29(3), pages 377-387, August.
    14. Guy Desaulniers & Jørgen G. Rakke & Leandro C. Coelho, 2016. "A Branch-Price-and-Cut Algorithm for the Inventory-Routing Problem," Transportation Science, INFORMS, vol. 50(3), pages 1060-1076, August.
    15. Liu, Wenqian & Ke, Ginger Y. & Chen, Jian & Zhang, Lianmin, 2020. "Scheduling the distribution of blood products: A vendor-managed inventory routing approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    16. Hu, Weihong & Toriello, Alejandro & Dessouky, Maged, 2018. "Integrated inventory routing and freight consolidation for perishable goods," European Journal of Operational Research, Elsevier, vol. 271(2), pages 548-560.
    17. Mirzapour Al-e-hashem, Seyed M.J. & Rekik, Yacine & Mohammadi Hoseinhajlou, Ebrahim, 2019. "A hybrid L-shaped method to solve a bi-objective stochastic transshipment-enabled inventory routing problem," International Journal of Production Economics, Elsevier, vol. 209(C), pages 381-398.
    18. Ketzenberg, Michael E. & Metters, Richard D., 2020. "Adapting operations to new information technology: A failed “internet of things” application," Omega, Elsevier, vol. 92(C).
    19. Jia, Menglei & Chen, Feng, 2023. "Upward scalable vehicle routing problem of automobile inbound logistics with pickup flexibility," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    20. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.

    More about this item

    Keywords

    Blood inventory-routing; Multi-vehicle IRP; perishable products; platelet; branch-and-cut algorithm.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cys:ecocyb:v:50:y:2017:i:4:p:315-333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/feasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.