On perishable inventory in healthcare: random expiration dates and age discriminated demand

Abstract

ABSTRACT The aim of the study is to explore how best to mitigate against inventory volatility in perishable inventory, which is characterized by random premature expiration, random demand, irregular supply, age differentiated demand and custom replenishment guidelines. Through the adoption of simulation-optimization along with new settings and replenishment policies, the optimized quantity level of daily orders could be determined for this combination of inventory restrictions. Owed to their custom medical compatibility guidelines, and their notable accelerated expiration, blood platelets were considered here. As study outcome, the emergent model presents a perspective of supply chains and their healthcare imperatives that will enable healthcare supply chain managers not only to discern, but also to interpret and facilitate the management and implementation of optimal inventories.