Game Theory in Blood Supply Chains
https://theconversation.com/how-game-theory-could-help-ensure-you-will-get-blood-when-you-need-it-90909
The article linked above discusses an application of game theory in the medical field. Specifically, it proposes using game theory to facilitate the distribution of donated blood to hospitals and patients in need effectively. The article begins by describing some of the unique features and constraints of blood supply chains, including their time sensitivity, reliance on donations rather than manufacturing, and a volatile healthcare landscape with fierce competition on both the supply and demand sides. The article goes on to discuss how game theory analytics can be used to help with these problems.
In essence, the problem faced by organizations involved in blood supply chains mimics the traffic problems discussed in class. How can limited resources be most effectively distributed in the shortest amount of time? The algorithmic solution to the authors’ game theory supply chain network model tells us the optimal blood flows plus the prices that should be charged for cost recovery. It also uses information about the nature of networks to help identify which blood service organization is affected the most in the presence of various supply chain disruptions including disease and natural disaster. This is meant to enable the blood service organizations to be more prepared and resilient in the event of an emergency.