Blood is a kind of perishable commodity with lifetime.A good management can raise the utility of blood.In this thesis,we use markovian decision process,joint-probability distribution and linear programming to model a two-echelon blood transfusion system.We minimize the total cost including input cost,holding cost and outdating cost. The methodology and procedure for the optimal inventory and distribution policy have been developed. Furthermore,actual data from Hsin-Chu Blood Transfusion System have been collected and analyzed, and the results of this research could be used as a good reference.