Indonesian Red Cross (IRC) is assigned to operate the blood bank in Indonesia’s blood supply chain system. Due to the system decentralization, the regional blood banks are responsible for providing blood supply in their municipal area. Blood banks need to meet certain performance indicators to minimize shortages and outdated blood bags and generate sufficient income to cover operational costs and organizational development. This research aims to build a blood-bank management model by focusing on a multi-product arrangement and considering the unpredictability of supply and demand. Discrete event simulation was used to model the actual system and evaluate policy options to enhance blood bank performance. The simulation experimentation examines four control variables: supply arrangements based on Fixed Location Service (FLS), Mobile Unit Service (MUS), inventory target, and the setting of output product percentages. This study successfully provided solutions that can enhance the quality and efficiency of blood bank services. In this study, each scenario reveals the trade-off between the extent of the shortage and the level of obsolescence. The regulatory environment where donors are recruited greatly impacts shortages, obsolescence, and net income. Blood bank management must create an optimum targeted service level and revenue expectation to make strategic decisions.

Original languageEnglish
Pages (from-to)77-96
Number of pages20
JournalOperations and Supply Chain Management
Issue number1
Publication statusPublished - 2023


  • Performance
  • blood supply chain
  • decentralized
  • discrete event simulation


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