Read the example of the National Blood Service in the file I have attached, demonstrate your understanding of inventory control for perishable product by answering the following three questions:
1. What are the factors that constitute inventory holding costs, order costs and stock-out costs in a National Blood Service?
2. What makes this particular inventory planning and control example so complex? Combine example(s) from other businesses / services encountering similar problems to answer this question.
3. How might the National Blood Service inventory management affect its ability to collect blood?
a) Content
For each of the points above you should base on the case provided, collect examples and evidences from other resources, and draw upon various operations management techniques / models / studies, to elaborate your answer.
Produce a report that can be presented to the company’s senior management team.
b) Length limit
This report should be 2000 words [+/- 10%] in length (excluding references and appendices).