Inventory-responsive donor-management policy: A tandem queueing network model

Problem definition: In the blood-donor-management problem, the blood bank incentivizes donors to donate, given blood inventory levels. We propose a model to optimize such incentivization schemes under the context of random demand, blood perishability, observation period between donations, and variab...

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Main Authors: ZHU, Taozeng, YEO, Nicholas Teck Boon, GAO, Sarah Yini, LOKE, Gar Goei
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Language:English
Published: Institutional Knowledge at Singapore Management University 2023
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/7260
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8259/viewcontent/Inventory_responsiveDonor_Mgt_Policy_av.pdf
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spelling sg-smu-ink.lkcsb_research-82592023-12-21T06:55:37Z Inventory-responsive donor-management policy: A tandem queueing network model ZHU, Taozeng YEO, Nicholas Teck Boon GAO, Sarah Yini LOKE, Gar Goei Problem definition: In the blood-donor-management problem, the blood bank incentivizes donors to donate, given blood inventory levels. We propose a model to optimize such incentivization schemes under the context of random demand, blood perishability, observation period between donations, and variability in donor arrivals and dropouts. Methodology/results: We propose an optimization model that simultaneously accounts for the dynamics in the blood inventory and the donor’s donation process, as a coupled queueing network. We adopt the Pipeline Queue paradigm, which leads us to a tractable convex reformulation. The coupled setting requires new methodologies to be developed upon the existing Pipeline Queue framework. Numerical results demonstrate the advantages of the optimal policy by comparing it with the commonly adopted and studied threshold policy. Our optimal policy can effectively reduce both shortages and wastage. Managerial implications: Our model is the first to operationalize a dynamic donor-incentivization scheme, by determining the optimal number of donors of different donation responsiveness to receive each type of incentive. It can serve as a decision-support tool that incorporates practical features of blood supply-chain management not addressed thus far, to the best of our knowledge. Simulations on existing policies indicate the dangers of myopic approaches and justify the need for smoother and forward-looking donor-incentivization schedules that can hedge against future demand variation. Our model also has potential wider applications in supply chains with perishable inventory. 2023-07-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7260 info:doi/10.1287/msom.2023.1228 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8259/viewcontent/Inventory_responsiveDonor_Mgt_Policy_av.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Pipeline Queues blood collection donor management humanitarian operations perishable inventory management Nonprofit Administration and Management Operations and Supply Chain Management Operations Research, Systems Engineering and Industrial Engineering
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Pipeline Queues
blood collection
donor management
humanitarian operations
perishable inventory management
Nonprofit Administration and Management
Operations and Supply Chain Management
Operations Research, Systems Engineering and Industrial Engineering
spellingShingle Pipeline Queues
blood collection
donor management
humanitarian operations
perishable inventory management
Nonprofit Administration and Management
Operations and Supply Chain Management
Operations Research, Systems Engineering and Industrial Engineering
ZHU, Taozeng
YEO, Nicholas Teck Boon
GAO, Sarah Yini
LOKE, Gar Goei
Inventory-responsive donor-management policy: A tandem queueing network model
description Problem definition: In the blood-donor-management problem, the blood bank incentivizes donors to donate, given blood inventory levels. We propose a model to optimize such incentivization schemes under the context of random demand, blood perishability, observation period between donations, and variability in donor arrivals and dropouts. Methodology/results: We propose an optimization model that simultaneously accounts for the dynamics in the blood inventory and the donor’s donation process, as a coupled queueing network. We adopt the Pipeline Queue paradigm, which leads us to a tractable convex reformulation. The coupled setting requires new methodologies to be developed upon the existing Pipeline Queue framework. Numerical results demonstrate the advantages of the optimal policy by comparing it with the commonly adopted and studied threshold policy. Our optimal policy can effectively reduce both shortages and wastage. Managerial implications: Our model is the first to operationalize a dynamic donor-incentivization scheme, by determining the optimal number of donors of different donation responsiveness to receive each type of incentive. It can serve as a decision-support tool that incorporates practical features of blood supply-chain management not addressed thus far, to the best of our knowledge. Simulations on existing policies indicate the dangers of myopic approaches and justify the need for smoother and forward-looking donor-incentivization schedules that can hedge against future demand variation. Our model also has potential wider applications in supply chains with perishable inventory.
format text
author ZHU, Taozeng
YEO, Nicholas Teck Boon
GAO, Sarah Yini
LOKE, Gar Goei
author_facet ZHU, Taozeng
YEO, Nicholas Teck Boon
GAO, Sarah Yini
LOKE, Gar Goei
author_sort ZHU, Taozeng
title Inventory-responsive donor-management policy: A tandem queueing network model
title_short Inventory-responsive donor-management policy: A tandem queueing network model
title_full Inventory-responsive donor-management policy: A tandem queueing network model
title_fullStr Inventory-responsive donor-management policy: A tandem queueing network model
title_full_unstemmed Inventory-responsive donor-management policy: A tandem queueing network model
title_sort inventory-responsive donor-management policy: a tandem queueing network model
publisher Institutional Knowledge at Singapore Management University
publishDate 2023
url https://ink.library.smu.edu.sg/lkcsb_research/7260
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8259/viewcontent/Inventory_responsiveDonor_Mgt_Policy_av.pdf
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