IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v275y2019i2d10.1007_s10479-018-3029-2.html
   My bibliography  Save this article

Supply chain network competition among blood service organizations: a Generalized Nash Equilibrium framework

Author

Listed:
  • Anna Nagurney

    (University of Massachusetts)

  • Pritha Dutta

    (University of Massachusetts)

Abstract

In this paper we present a Generalized Nash Equilibrium model of supply chain network competition among blood service organizations which compete not only for blood donors but also for business from hospitals and medical centers. The model incorporates not only link capacities and associated arc multipliers to capture perishability, but also bounds on the number of donors in regions as well as lower and upper bounds on the demands at the demand points in order to ensure needed amounts for surgeries, treatments, etc., while reducing wastage. The concept of a variational equilibrium is utilized to transform the problem into a variational inequality problem, and alternative formulations are given. A Lagrange analysis yields economic insights. The proposed algorithmic procedure is then applied to a series of numerical examples in order to illustrate the impacts of disruptions in the form of a reduction on the number of donors as well as that of decreases in capacities of critical links such as testing and processing on RBC prices, demands, net revenues of the blood service organizations, and their overall utilities.

Suggested Citation

  • Anna Nagurney & Pritha Dutta, 2019. "Supply chain network competition among blood service organizations: a Generalized Nash Equilibrium framework," Annals of Operations Research, Springer, vol. 275(2), pages 551-586, April.
    • Handle: RePEc:spr:annopr:v:275:y:2019:i:2:d:10.1007_s10479-018-3029-2
    DOI: 10.1007/s10479-018-3029-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-018-3029-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-018-3029-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anna Nagurney, 2018. "A Multitiered Supply Chain Network Equilibrium Model for Disaster Relief with Capacitated Freight Service Provision," Springer Optimization and Its Applications, in: Ilias S. Kotsireas & Anna Nagurney & Panos M. Pardalos (ed.), Dynamics of Disasters, pages 85-108, Springer.
    2. Masoumi, Amir H. & Yu, Min & Nagurney, Anna, 2017. "Mergers and acquisitions in blood banking systems: A supply chain network approach," International Journal of Production Economics, Elsevier, vol. 193(C), pages 406-421.
    3. Carl Mellström & Magnus Johannesson, 2008. "Crowding Out in Blood Donation: Was Titmuss Right?," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 845-863, June.
    4. Andres F. Osorio & Sally C. Brailsford & Honora K. Smith, 2015. "A structured review of quantitative models in the blood supply chain: a taxonomic framework for decision-making," International Journal of Production Research, Taylor & Francis Journals, vol. 53(24), pages 7191-7212, December.
    5. Wang, Ke-Ming & Ma, Zu-Jun, 2015. "Age-based policy for blood transshipment during blood shortage," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 166-183.
    6. Kopach, Renata & Balcioglu, Baris & Carter, Michael, 2008. "Tutorial on constructing a red blood cell inventory management system with two demand rates," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1051-1059, March.
    7. Caruso, Valeria & Daniele, Patrizia, 2018. "A network model for minimizing the total organ transplant costs," European Journal of Operational Research, Elsevier, vol. 266(2), pages 652-662.
    8. Fahimnia, Behnam & Jabbarzadeh, Armin & Ghavamifar, Ali & Bell, Michael, 2017. "Supply chain design for efficient and effective blood supply in disasters," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 700-709.
    9. Dan Chazan & Shmuel Gal, 1977. "A Markovian Model for a Perishable Product Inventory," Management Science, INFORMS, vol. 23(5), pages 512-521, January.
    10. Goh, Mark & Lim, Joseph Y.S. & Meng, Fanwen, 2007. "A stochastic model for risk management in global supply chain networks," European Journal of Operational Research, Elsevier, vol. 182(1), pages 164-173, October.
    11. Ramezanian, Reza & Behboodi, Zahra, 2017. "Blood supply chain network design under uncertainties in supply and demand considering social aspects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 69-82.
    12. Duan, Qinglin & Liao, T. Warren, 2014. "Optimization of blood supply chain with shortened shelf lives and ABO compatibility," International Journal of Production Economics, Elsevier, vol. 153(C), pages 113-129.
    13. Steven Nahmias, 1982. "Perishable Inventory Theory: A Review," Operations Research, INFORMS, vol. 30(4), pages 680-708, August.
    14. Patrizia Daniele & Sofia Giuffrè, 2015. "Random Variational Inequalities and the Random Traffic Equilibrium Problem," Journal of Optimization Theory and Applications, Springer, vol. 167(1), pages 363-381, October.
    15. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    16. Anna Nagurney & Min Yu & Deniz Besik, 2017. "Supply chain network capacity competition with outsourcing: a variational equilibrium framework," Journal of Global Optimization, Springer, vol. 69(1), pages 231-254, September.
    17. K Katsaliaki & S C Brailsford, 2007. "Using simulation to improve the blood supply chain," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(2), pages 219-227, February.
    18. Jeremy Thornton, 2008. "Competition, Contractibility, and the Market for Donors to Nonprofits," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 24(1), pages 215-246, May.
    19. Anna Nagurney, 2006. "Supply Chain Network Economics," Books, Edward Elgar Publishing, number 4242.
    20. Beliën, Jeroen & Forcé, Hein, 2012. "Supply chain management of blood products: A literature review," European Journal of Operational Research, Elsevier, vol. 217(1), pages 1-16.
    21. Nagurney, Anna & Flores, Emilio Alvarez & Soylu, Ceren, 2016. "A Generalized Nash Equilibrium network model for post-disaster humanitarian relief," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 1-18.
    22. Anna Nagurney & Amir Masoumi & Min Yu, 2012. "Supply chain network operations management of a blood banking system with cost and risk minimization," Computational Management Science, Springer, vol. 9(2), pages 205-231, May.
    23. Dursun Delen & Madhav Erraguntla & Richard Mayer & Chang-Nien Wu, 2011. "Better management of blood supply-chain with GIS-based analytics," Annals of Operations Research, Springer, vol. 185(1), pages 181-193, May.
    24. Toyasaki, Fuminori & Daniele, Patrizia & Wakolbinger, Tina, 2014. "A variational inequality formulation of equilibrium models for end-of-life products with nonlinear constraints," European Journal of Operational Research, Elsevier, vol. 236(1), pages 340-350.
    25. Ki-Seok Choi & J. G. Dai & Jing-Sheng Song, 2004. "On Measuring Supplier Performance Under Vendor-Managed-Inventory Programs in Capacitated Supply Chains," Manufacturing & Service Operations Management, INFORMS, vol. 6(1), pages 53-72, April.
    26. Srinagesh Gavirneni, 2002. "Information Flows in Capacitated Supply Chains with Fixed Ordering Costs," Management Science, INFORMS, vol. 48(5), pages 644-651, May.
    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. Asadpour, Milad & Olsen, Tava Lennon & Boyer, Omid, 2022. "An updated review on blood supply chain quantitative models: A disaster perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    2. Mohsen Momenitabar & Zhila Dehdari Ebrahimi & Mohammad Arani & Jeremy Mattson, 2023. "Robust possibilistic programming to design a closed-loop blood supply chain network considering service-level maximization and lateral resupply," Annals of Operations Research, Springer, vol. 328(1), pages 859-901, September.
    3. Samani, Mohammad Reza Ghatreh & Hosseini-Motlagh, Seyyed-Mahdi & Homaei, Shamim, 2020. "A reactive phase against disruptions for designing a proactive platelet supply network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    4. Anna Nagurney & Pritha Dutta, 2021. "A Multiclass, Multiproduct Covid-19 Convalescent Plasma Donor Equilibrium Model," SN Operations Research Forum, Springer, vol. 2(3), pages 1-30, September.
    5. Caiquan Duan & Guoyi Xiu & Fengmin Yao, 2019. "Multi-Period E-Closed-Loop Supply Chain Network Considering Consumers’ Preference for Products and AI-Push," Sustainability, MDPI, vol. 11(17), pages 1-32, August.
    6. Yunhan Huang & Quanyan Zhu, 2022. "Game-Theoretic Frameworks for Epidemic Spreading and Human Decision-Making: A Review," Dynamic Games and Applications, Springer, vol. 12(1), pages 7-48, March.

    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. Nagurney, Anna & Dutta, Pritha, 2019. "Competition for blood donations," Omega, Elsevier, vol. 85(C), pages 103-114.
    2. Hamdan, Bayan & Diabat, Ali, 2020. "Robust design of blood supply chains under risk of disruptions using Lagrangian relaxation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    3. Donya Rahmani, 2019. "Designing a robust and dynamic network for the emergency blood supply chain with the risk of disruptions," Annals of Operations Research, Springer, vol. 283(1), pages 613-641, December.
    4. Kamyabniya, Afshin & Noormohammadzadeh, Zohre & Sauré, Antoine & Patrick, Jonathan, 2021. "A robust integrated logistics model for age-based multi-group platelets in disaster relief operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    5. Gunpinar, Serkan & Centeno, Grisselle, 2016. "An integer programming approach to the bloodmobile routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 94-115.
    6. Lowalekar, Harshal & Ravi, R. Raghavendra, 2017. "Revolutionizing blood bank inventory management using the TOC thinking process: An Indian case study," International Journal of Production Economics, Elsevier, vol. 186(C), pages 89-122.
    7. Dehghani, Maryam & Abbasi, Babak & Oliveira, Fabricio, 2021. "Proactive transshipment in the blood supply chain: A stochastic programming approach," Omega, Elsevier, vol. 98(C).
    8. Dillon, Mary & Oliveira, Fabricio & Abbasi, Babak, 2017. "A two-stage stochastic programming model for inventory management in the blood supply chain," International Journal of Production Economics, Elsevier, vol. 187(C), pages 27-41.
    9. Mohammad Reza Ghatreh Samani & Seyyed-Mahdi Hosseini-Motlagh, 2019. "An enhanced procedure for managing blood supply chain under disruptions and uncertainties," Annals of Operations Research, Springer, vol. 283(1), pages 1413-1462, December.
    10. Diabat, Ali & Jabbarzadeh, Armin & Khosrojerdi, Amir, 2019. "A perishable product supply chain network design problem with reliability and disruption considerations," International Journal of Production Economics, Elsevier, vol. 212(C), pages 125-138.
    11. Ana Margarida Araújo & Daniel Santos & Inês Marques & Ana Barbosa-Povoa, 2020. "Blood supply chain: a two-stage approach for tactical and operational planning," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(4), pages 1023-1053, December.
    12. Bruno, Giuseppe & Diglio, Antonio & Piccolo, Carmela & Cannavacciuolo, Lorella, 2019. "Territorial reorganization of regional blood management systems: Evidences from an Italian case study," Omega, Elsevier, vol. 89(C), pages 54-70.
    13. Samani, Mohammad Reza Ghatreh & Hosseini-Motlagh, Seyyed-Mahdi & Homaei, Shamim, 2020. "A reactive phase against disruptions for designing a proactive platelet supply network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    14. Hosseini-Motlagh, Seyyed-Mahdi & Samani, Mohammad Reza Ghatreh & Homaei, Shamim, 2020. "Toward a coordination of inventory and distribution schedules for blood in disasters," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    15. Ramezanian, Reza & Behboodi, Zahra, 2017. "Blood supply chain network design under uncertainties in supply and demand considering social aspects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 69-82.
    16. Gilani Larimi, Niloofar & Yaghoubi, Saeed & Hosseini-Motlagh, Seyyed-Mahdi, 2019. "Itemized platelet supply chain with lateral transshipment under uncertainty evaluating inappropriate output in laboratories," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    17. Tirkolaee, Erfan Babaee & Golpîra, Hêriş & Javanmardan, Ahvan & Maihami, Reza, 2023. "A socio-economic optimization model for blood supply chain network design during the COVID-19 pandemic: An interactive possibilistic programming approach for a real case study," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    18. Hosseini-Motlagh, Seyyed-Mahdi & Samani, Mohammad Reza Ghatreh & Cheraghi, Sara, 2020. "Robust and stable flexible blood supply chain network design under motivational initiatives," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    19. Nagurney, Anna & Salarpour, Mojtaba & Daniele, Patrizia, 2019. "An integrated financial and logistical game theory model for humanitarian organizations with purchasing costs, multiple freight service providers, and budget, capacity, and demand constraints," International Journal of Production Economics, Elsevier, vol. 212(C), pages 212-226.
    20. Yuan Xu & Joseph Szmerekovsky, 2022. "A multi-product multi-period stochastic model for a blood supply chain considering blood substitution and demand uncertainty," Health Care Management Science, Springer, vol. 25(3), pages 441-459, September.

    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:spr:annopr:v:275:y:2019:i:2:d:10.1007_s10479-018-3029-2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.