5 Most countries have blood collection and distribution services that collect from donors, process the blood by either breaking the blood down into its constituent parts or keeping it whole, and transport the blood from collection centres to hospitals in response to both routine and emergency requests.

(a) What are the factors that constitute inventory holding costs, order costs and stock-out costs in such a blood service?

(b) What makes this particular inventory planning and control example so complex?

(c) How might the efficiency with which a blood service controls its inventory affect its ability to collect blood?