What are the Responsibilities of Management in Keeping Products with Short Shelf life Such as Blood


Instructions

ESSAY TYPE QUESTION (Discuss the following case) (20 poinst) Hospitals face the problem of organizing an important stock item, whether large or small. This problem is how many units of blood they need to keep in stock according to each type of blood group, because blood is both very expensive and a product with a maximum shelf life of 5 weeks (at a temperature of 1-6 degrees Celsius). If every manager wants to keep the stocks to a minimum level, as well as emergency situations (such as accidents, disasters etc.), it often causes the stocks not to be kept optimally. Hospital management is considering implementing this strategy at 85% service level based on previous years’ data. What might be the effects of this decision in terms of inventory management? What are the responsibilities of management in keeping products with short shelf life such as blood? Determine the stock management strategy, stock management and models assumptions that should be followed for such a product, taking into account the assumptions.

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