This project examined the possible benefits of introducing an inventory exchange system to a network of hospitals for high value, low use products in order to decrease the number of product expirations across the network. Hospitals with lower product use would exchange its soon-to-expire products with the highest volume hospital’s newest product. A model of the system was built and investigated using the simulation software Simul8. Sensitivity analysis was performed on the following parameters: inventory level, patient arrivals, product life-time, and the transfer window. Trends varied across all of the variables and discussion will be left for the body of the paper. The situation that appeared most beneficial occurred with a transfer window of two weeks and an inventory level of 25%. In this scenario, the number of expirations was limited and the transfers required were not extreme. In addition, the hospitals experienced very low stock-outs. It was found that with an inventory level of 25% and a 2 week transfer window, an inventory exchange system would add value to the network for product exchange costs up to 1/3 the cost of an expired product whose lifetime is 32 weeks and 2/3 the cost of an expired product whose lifetime is 44 weeks. Several extensions off of this project were suggested, involving variations in how the products close to expiration are handled. Finally, it was concluded that more investigation into the system, with numbers representative of true hospital networks and time sensitive products, would be worthwhile as the exchange system proved beneficial in several cases and possibly in numerous fringe cases. On the other hand, there were cases where it would definitely not prove beneficial, which is also useful information. The simulation product would be an easy tool and useful for hospitals considering this change.