Medical Nuclear Supply Chain Design: A Tractable Network Model and Computational Approach

In this paper, we develop a tractable network model and computational approach for the design of medical nuclear supply chains. Our focus is on the molybdenum supply chain, which is the most commonly used radioisotope for medical imaging utilized in cardiac and cancer diagnostics. This topic is of special relevance to healthcare given the medical nuclear product’s widespread use as well as the aging of the nuclear reactors where it is produced. The generalized network model, for which we derive formulae for the arc and path multipliers that capture the underlying physics of radioisotope decay, includes total operational cost minimization, and the minimization of cost associated with nuclear waste discarding, coupled with capacity investment costs. Its solution yields the optimal link capacities as well as the optimal product flows so that demand at the medical facilities is satisfied. We illustrate the framework with a case study. The framework provides the foundation for further empirical research and the basis for the modeling and analysis of supply chain networks for other very time-sensitive medical products.