RBCs are formed through a process called erythropoiesis where hematopoietic stem cells in the bone marrow differentiate into red blood cells over 4 days. The kidney regulates RBC production by releasing erythropoietin in response to low blood oxygen levels. As RBCs age over 120 days, they are destroyed by macrophages in the spleen and liver, recycling the iron while the heme portion is broken down into bilirubin and excreted in the feces and urine.