Blood banks are established intermediaries operating in an environment characterized with a high degree of supply (blood) uncertainty. Customers of these blood banks (e.g., hospitals), in turn, scale up their requirements of blood to compensate for this uncertainty. This leads to process inefficiencies and higher costs for the blood bank reflected in higher “prices” for eventual customers (e.g., patients). Several research studies examine operations for regional blood banks to offer the following actionable insights. First, if the bank offers each of their customers (the hospitals) an appropriate shortage subsidy, it will result in hospitals choosing to provide the bank with more accurate information of their demands. Such information would increase efficiencies in managing the supply-demand mismatch. On the downside, if there is high variability in supply and/or demand, then the subsidy offered will have to be very large. Second, from a tactical perspective, one process issue of critical importance for blood banks is an effective distribution of their supply to meet demand. Under high supply and demand uncertainty, a distribution policy to optimize shortage and obsolescence costs over a given time period is proposed. Through extensive analysis using historical data, this policy provides significant process efficiencies as compared to existing procedures.