Generalized route planning model for hazardous material transportation with VaR and equity considerations

Abstract

Recently, the Value-at-Risk (VaR) framework was introduced for the routing problem of a single hazmat trip. In this paper, we extend the VaR framework in two important ways.First, we show how to apply the VaR concept to a more realistic multi-trip multi-hazmat type framework, which determines routes that minimize the global VaR value while satisfying equity constraints. Second, we show how to embed the algorithm for the single hazmat trip problem into a Lagrangian relaxation framework to obtain an efficient solution method for this general case. We test our computational experience based on a real-life hazmat routing scenario in the Albany district of New York State. Our results indicate that one can achieve a high degree of risk dispersion while controlling the VaR value within the desired confidence level.

Value-at-Risk and Conditional Value-at-Risk Minimization for Hazardous Materials Routing

“…In the later paper the VaR and CVaR models are used to address the problem of minimizing the risk rising from short product lifestyles and high uncertainty concerning the demand in the electronics industry. In addition, the concepts of VaR and CVaR have been recently applied in hazmat transportation (Kang et al, 2013(Kang et al, , 2011Kwon, 2011). However the application of these models is significantly different than the models used in finance.…”

Routing hazardous materials on time-dependent networks using conditional value-at-risk

“…Kang et al (2013a) showed that for each path l ∈ P, VaR l α = max (i,j)∈A l c ij for all α ∈ (p l max , 1). Therefore, by Lemma 2, we have CVaR l α = max (i,j)∈A l c ij for all α ∈ (p l max , 1) and for each path l ∈ P.…”

A Multi-Criteria GIS-Based Route Selection Tool for Hazardous Material Transport: Consideration of Environmental Consequence, Traffic Congestions and Costs

“…Substantial research effort has been devoted to routing of hazardous materials Lepofsky et al, 1993;Leonelli et al, 2000;. There is considerable amount of research addressing design of road networks for hazardous materials, where evaluation criteria were defined for the assessments Kara and Verter, 2004;Kang et al, 2014). However, most of the studies focus only on travel costs by considering the path length; with studies also taking into account the risk was for network assessment/design.…”

“…Researches regarding the risk associated with hazardous material transport are quite extensive (Leonelli et al, 2000;Glickman et al, 2007;Reniers et al, 2010;Kang et al, 2014;Saat et al, 2014;Chakrabarti and Parick, 2013b;Van Raemdonck et al, 2013). Several studies focused on routing of the hazardous material cargos, the key approach was taking into account scheduling, location, and perhaps high risk routes and nods Karkazis and Boffey, 1995;Erkut, 1995;Leonelli et al, 2000;Gunasekera and Edwards, 2003;Singh et al, 2011;Mahmoudabadi and Seyedhosseini, 2013).…”

“…There is significant amount of research on identification of the risks associated with hazardous material accidents Leonelli et al, 2000;Glickman et al, 2007;Reniers et al, 2010;Toumazis and Kwon, 2010;Kang et al, 2014;Saat et al, 2014;Chakrabarti and Parikh, 2013;and Van Raemdonck et al, 2013). In the studies which focused on routing the hazardous freights, the common criterion was the risks associated with the transport of hazardous goods Lepofsky et al, 1993Erkut, 1995;Leonelli et al, 2000;Gunasekera and Edwards, 2003;Singh et al, 2011;Mahmoudabadi and Seyedhosseini, 2013;and Cappanera and Nonato, 2014).…”