Determining the Optimal Storage in the EOQ Model and the Effect of Sensitivity Analysis with Practical Application

Abstract

Determining the optimal Inventory quantity is one of the important issues, especially in the health sector, as the National Center for Blood Transfusion suffers from cases of tracking the required quantities of blood and lack of accuracy in determining storage costs, as decision-makers face difficulties in making decisions related to determining the economic amount of storage. Decision-makers seek to maintain adequate quantities of blood bags to meet the needs of patients, and this leads, on the one hand, to high storage costs, and on the other hand, increases the possibility of damage to blood bags as a result of their limited shelf life. Therefore, the aim of this research was to determine the optimal demand quantities for blood types, including (A^+,B^+), so the National Center for Blood Transfusion can benefit to make the cost of storage and the shortage of blood bags as low as possible. Where the optimal order quantity for blood types (A^+,B^+) was calculated, the monthly total cost was calculated, in addition to the sensitivity analysis and its effect on the total cost in the case of the optimum order quantity. The results showed the importance of applying sensitivity analysis to the Economic Order Quantity (EOQ) model, because it gives more flexibility for decision-makers to adjust near or far from the ideal solution according to circumstances, especially in times of emergency.