Simulation of cloud-based blood supply chain: a system dynamics approach

Efficient inventory management of blood and its components is a highly important problem in blood supply chain management (BSCM). It ensures that lives are not endangered due to insufficient supply while also minimizing wastage. Given the inherent uncertainty in supply and demand within the blood supply chain (BSC), effective inventory management depends on balancing these two factors. A key research gap in this area is the application of real-time information sharing to balance supply and demand through targeted donation—where donations are made based on actual system needs, preventing unnecessary contributions. This paper has two main objectives: (1) To systematically analyze how the interrelationships among influencing factors shape the behavior of the BSC concerning three key performance indicators (KPIs)—wastage rate, fill rate, and inventory level, and (2) To introduce, for the first time in the literature, a cloud-based BSCM (CBSCM) system as a proposed e-healthcare improvement policy. We employ a system dynamics (SD) approach to examine the structure of the BSC. Within the SD methodology, we illustrate reference modes, identify key influencing variables, develop causal loop and stock-and-flow diagrams, run simulations using available data, and validate the results. To assess the model’s real-world applicability, we conduct a case study on Iran’s BSC. The findings highlight the superiority of CBSCM over the conventional system from the perspective of the considered KPIs. Therefore, CBSCM can serve as an effective policy for countries aiming to implement e-BSCM.