This research provides a new approach to blood bank administrators for managing the complex blood bank inventory problem. Our method primarily involves identifying and analyzing significant sub-problems from the blood bank context, which can then be integrated in a comprehensive model. We construct a set of stand-alone models for the problem of blood collection under random supply. These models are quite generic in nature and the insights obtained from these models will be useful in the context of a wide variety of blood banks involved in the activities related to collection. The results from our simulation model suggest that it is actually beneficial to stop collection at some level during the blood donation camps. Our results show that the cutoff level policies usually perform better in terms of managing shortages, wastages and total costs as compared to the policy of collecting all the available supply, which is quite prevalent among the blood banks.