1. Heuristic-based allocation of supply constrained blood platelets in emerging economies
- Author
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Ødegaard, Fredrik and Roy, Sudipendra Nath
- Subjects
Control and Optimization ,Computer Networks and Communications ,0211 other engineering and technologies ,02 engineering and technology ,Management Science and Operations Research ,Article ,Supply and demand ,Microeconomics ,Artificial Intelligence ,0202 electrical engineering, electronic engineering, information engineering ,Heuristics ,Emerging economies ,Resource allocation ,Emerging markets ,021103 operations research ,Revenue management ,Heuristic ,Blood platelet ,Health care ,1. No poverty ,Rationing ,Social planner ,3. Good health ,020201 artificial intelligence & image processing ,Business ,Software ,Information Systems - Abstract
Platelets are valuable, but highly perishable, blood components used in the treatment of, among others, viral dengue fever, blood-related illness, and post-chemotherapy following cancer. Given the short shelf-life of 3–5 days and a highly volatile supply and demand pattern, platelet inventory allocation is a challenging task. This is especially prevalent in emerging economies where demand variability is more pronounced due to neglected tropical diseases, and a perpetual shortage of supply. The consequences of which have given rise to an illegal ‘red market’. Motivated by experience at a regional hospital in India, we investigate the problem of platelet allocation among three priority-differentiated demand streams. Specifically we consider a central hospital which, in addition to internal emergency and non-emergency requests, faces external demand from local clinics. We analyze the platelet allocation decision from a social planner’s perspective and propose an allocation heuristic based on revenue management (RM) principles. The objective is to maximize total social benefit in a highly supply-constrained environment. Using data from the aforementioned Indian hospital as a case study, we conduct a numerical simulation and sensitivity analysis to evaluate the allocation heuristic. The performance of the RM-based policy is evaluated against the current sequential first come, first serve policy and two fixed proportion-based rationing policies. It is shown that the RM-based policy overall dominates, serves patients with the highest medical urgency better, and can curtail patients’ need to procure platelets from commercial sources.
- Published
- 2021
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