This research presents an innovative method for blood bank management using Cloud-based Long Short-Term Memory (LSTM) models for precise inventory forecasting and optimization. The objective of this research is to increase blood bank efficiency by utilizing LSTM models to accurately estimate demand, optimize inventory levels, and enhance overall resource utilization. The system uses cloud computing to provide real-time demand forecasting, minimizing blood waste and assuring a reliable supply for healthcare requirements. LSTM models use historical data to identify long-term trends and variations in blood demand, facilitating accurate inventory forecasting. This predictive system optimizes the allocation process, resulting in improve resource utilization and increased operational efficiency. In compared to traditional techniques, the proposed system provides a more scalable and flexible solution by using cloud technology to provide continuous monitoring and dynamic modifications of inventory levels. It provides a robust framework for management of blood supply and enhancing patient care for improved resource management. Future enhancements may include broadening the system to incorporate real-time multi-source data integration and investigating hybrid machine learning models to better optimize demand forecasts. © 2025 Elsevier B.V., All rights reserved.