Conditional Value-at-Risk Model for Hazardous Materials Transportation

Authors

Changhyun Kwon, University at BuffaloFollow

Document Type

Conference Proceeding

Publication Date

12-2011

Keywords

hazardous materials, accidents, reactive power, roads, computational modeling, optimization

Digital Object Identifier (DOI)

https://doi.org/10.1109/WSC.2011.6147886

Abstract

This paper investigates how the conditional value-at-risk (CVaR) can be used to mitigate risk in hazardous materials (hazmat) transportation. Routing hazmat must consider accident probabilities and accident consequences that depend on the hazmat types and route choices. This paper proposes a new method for mitigating risk based on CVaR measure. While the CVaR model is popularly used in financial portfolio optimization problems, its application in hazmat transportation is new. A computational method for determining the optimal CVaR route is proposed and illustrated by a case study in the road network surrounding Albany, NY.

Was this content written or created while at USF?

No

Citation / Publisher Attribution

Proceedings of the 2011 Winter Simulation Conference (WSC), p. 1703-1709

Scholar Commons Citation

Kwon, Changhyun, "Conditional Value-at-Risk Model for Hazardous Materials Transportation" (2011). Industrial and Management Systems Engineering Faculty Publications. 48.
https://digitalcommons.usf.edu/egs_facpub/48