Amir H. Masoumi

Supply Chain Network Operations Management of a Blood Banking System with Cost and Risk Minimization

Blood service operations are a key component of the healthcare system all over the world and yet the modeling and the analysis of such systems from a complete supply chain network optimization perspective have been lacking due to their associated unique challenges. In this paper, we develop a generalized network optimization model for the complex supply chain of human blood, which is a life-saving, perishable product. In particular, we consider a regionalized blood banking system consisting of collection sites, testing and processing facilities, storage facilities, distribution centers, as well as points of demand, which, typically, include hospitals. Our multicriteria system-optimization approach on generalized networks with arc multipliers captures many of the critical issues associated with blood supply chains such as the determination of the optimal allocations, and the induced supply-side risk, as well as the induced cost of discarding the waste, while satisfying the uncertain demands as closely as possible. The framework that we present is also applicable, with appropriate modifications, to the optimization of other supply chains of perishable products.

A Supply Chain Generalized Network Oligopoly Model for Pharmaceuticals under Brand Differentiation and Perishability

In this paper, we construct a generalized network oligopoly model with arc multipliers for supply chains of pharmaceutical products using variational inequality theory. The model captures the Cournot competition among the manufacturers who seek to determine their profit-maximizing product flows, which can be perishable, with the consumers differentiating among the products of the firms, whether branded or generic, and the firms taking into consideration the discarding costs. The numerical examples demonstrate that a brand pharmaceutical product may lose its dominant market share as a consequence of patent rights expiration and because of generic competition.

Supply Chain Network Design of a Sustainable Blood Banking System

In this paper, we develop a sustainable network design/redesign model for the complex supply chain of human blood, which is a valuable yet highly perishable product. Specifically, we consider the optimal design (or redesign) of a blood banking system consisting of collection sites, blood centers, testing and processing labs, storage facilities, distribution centers as well as demand points. Our multicriteria system-optimization approach on networks with arc multipliers captures several critical concerns associated with blood banking systems including but not limited to the determination of the optimal capacities and the optimal allocations, the induced supply-side risk, and the induced cost of discarding potentially hazardous blood waste, while the uncertain demand for blood is satisfied as closely as possible.

An Integrated Disaster Relief Supply Chain Network Model with Time Targets and Demand Uncertainty

As the number of natural disasters and their impacts increase across the globe, the need for effective preparedness against such events becomes more vital. In this paper, we construct a supply chain network optimization model for a disaster relief organization in charge of obtaining, storing, transporting, and distributing relief goods to certain disasterprone regions. Our system-optimization approach minimizes the total operational costs on the links of the supply chain network subject to the uncertain demand for aid at the demand points being satisfied as closely as possible. A goal programming approach is utilized to enforce the timely delivery of relief items with respect to the pre-specified time targets at the demand points. A solution algorithm for the model is also provided. A spectrum of numerical examples illustrates the modeling and computational framework, which integrates the two policies of pre-positioning relief supplies as well as their procurement once the disaster has occurred.

Fast Fashion Apparel Supply Chains

In this chapter, we develop an oligopoly model for fashion supply chains in the case of differentiated products with the inclusion of environmental concerns and with supply chain network link time consumption functions. Each fashion firm seeks to maximize its profit, with generalized cost components, as well as to minimize its emissions throughout its supply chain with the latter criterion being weighted in an individual manner by each firm. A case study illustrates both the generality of the modeling framework as well as how the computational scheme can be used in practice to explore the effects of changes in the demand functions; in the total generalized cost and the total emission functions, as well as in the weights.

Food Supply Chains

In this chapter, we construct a food supply chain network model under oligopolistic competition and perishability, with a focus on fresh produce. The model handles food spoilage through arc multipliers, with the inclusion of the discarding costs associated with disposal. We allow for product differentiation due to such relevant issues as product freshness and food safety and include alternative technologies associated with various supply chain activities. A case study, in which we analyze different scenarios prior to, during, and post a foodborne disease outbreak, based on the cantaloupe market, illustrates the modeling and computational framework.

Pharmaceutical Supply Chains

In this chapter, we present a generalized network oligopoly model for supply chains of pharmaceutical products using variational inequality theory. The model captures the Cournot competition among the manufacturers who seek to determine their profit-maximizing product flows, with the consumers differentiating among the products of the firms, whether branded or generic, and the firms taking into consideration the discarding costs. A case study demonstrates that a brand pharmaceutical product may lose its dominant market share as a consequence of patent expiration and because of generic competition.

Medical Nuclear Supply Chains

In this chapter, we present a generalized network model for the optimization of the complex operations of medical nuclear supply chains in the case of the radioisotope molybdenum, with a focus on minimizing the total operational cost, the total waste cost, and the risk associated with this highly time-sensitive and perishable, yet, critical, product used in healthcare diagnostics. Our model allows for the evaluation of transitioning the production and processing of the radioisotope from highly enriched uranium targets to low enriched uranium targets. A case study for North America demonstrates how our framework can be applied in practice.

Introduction and Scope

In this chapter, we highlight the background behind and the motivation for a unified approach to supply chain network analytics for time-sensitive, perishable products. We describe the methodological framework and provide the organization of the book, detailing the featured applications in sectors ranging from healthcare, including pharmaceutical, blood, and medical nuclear supply chains, to food and fashion apparel that are explored in depth through models and case studies.

Blood Supply Chains

In this chapter, we develop a blood supply chain generalized network optimization model. The model captures the perishability of this lifesaving product through the use of arc multipliers. It contains discarding costs associated with waste/disposal, handles uncertainty associated with demand points, assesses costs associated with shortages/surpluses at the demand points, and quantifies the supply-side risk associated with procurement and other supply chain activities. A case study illustrates the applicability of the analytics framework.