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 and redesign of medical nuclear supply chains. Our focus is on the supply chain of 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 formula for the arc and path multipliers that capture the underlying physics of radioisotope decay, is a multiple criteria system-optimization model that includes total cost minimization, the minimization of cost associated with nuclear waste discarding, and also risk management, coupled with investment (or disinvestment) costs. Its solution yields the optimal link investments as well as the optimal product flows so that demand at the medical facilities is satisfied. 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