5. Most countries have blood collection and distribution services that collect from donors, process the blood by

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5. Most countries have blood collection and distribution services that collect from donors, process the blood by either breaking it down into its constituent parts or keeping it whole, and transporting 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 example of inventory planning and control so complex?

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

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