Skip to main content
Top

2013 | OriginalPaper | Chapter

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

Authors : Iakovos Toumazis, Changhyun Kwon, Rajan Batta

Published in: Handbook of OR/MS Models in Hazardous Materials Transportation

Publisher: Springer New York

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This chapter provides fundamentals of value-at-risk and conditional value-at-risk models applied to routing problems in hazardous materials transportation.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Literature
go back to reference Abkowitz M, Cheng P (1988) Developing a risk/cost framework for routing truck movements of hazardous materials. Accid Anal Prev 20(1):39CrossRef Abkowitz M, Cheng P (1988) Developing a risk/cost framework for routing truck movements of hazardous materials. Accid Anal Prev 20(1):39CrossRef
go back to reference Abkowitz M, Eiger A, Srinivasan S (1984) Estimating the release rates and costs of transporting hazardous waste. Transport Res Rec 977:22–30 Abkowitz M, Eiger A, Srinivasan S (1984) Estimating the release rates and costs of transporting hazardous waste. Transport Res Rec 977:22–30
go back to reference Abkowitz M, Lepofsky M, Cheng P (1992) Selecting criteria for designating hazardous materials highway routes. Transport Res Rec 1333:30–35 Abkowitz M, Lepofsky M, Cheng P (1992) Selecting criteria for designating hazardous materials highway routes. Transport Res Rec 1333:30–35
go back to reference Acerbi C (2002) Spectral measures of risk: a coherent representation of subjective risk aversion. J Bank Finance 26:1505–1518CrossRef Acerbi C (2002) Spectral measures of risk: a coherent representation of subjective risk aversion. J Bank Finance 26:1505–1518CrossRef
go back to reference Acerbi C (2004) Coherent representations of subjective risk-aversion. In: Szeö G (ed) Risk measures for the 21st century. Wiley, New York, pp 147–207 Acerbi C (2004) Coherent representations of subjective risk-aversion. In: Szeö G (ed) Risk measures for the 21st century. Wiley, New York, pp 147–207
go back to reference Artzner P, Delbaen F, Eber J, Heath D (1999) Coherent measures of risk. Math Finance 9(3):203–228CrossRef Artzner P, Delbaen F, Eber J, Heath D (1999) Coherent measures of risk. Math Finance 9(3):203–228CrossRef
go back to reference Dah-Nein Tzang RML (1990) Hedge ratios under inherent risk reduction in commodity complex. J Futures Markets 10:497–504CrossRef Dah-Nein Tzang RML (1990) Hedge ratios under inherent risk reduction in commodity complex. J Futures Markets 10:497–504CrossRef
go back to reference Dowd K, Blake D (2006) After var: the theory, estimation, and insurance applications of quantile-based risk measures. J Risk Insur 73(2):193–229CrossRef Dowd K, Blake D (2006) After var: the theory, estimation, and insurance applications of quantile-based risk measures. J Risk Insur 73(2):193–229CrossRef
go back to reference Einhorn D (2008) Private profits and socialized risk. Global Association of Risk Professionals Risk Review, June/July, No. 42, pp 10–18 Einhorn D (2008) Private profits and socialized risk. Global Association of Risk Professionals Risk Review, June/July, No. 42, pp 10–18
go back to reference Erkut E, Ingolfsson A (2000) Catastrophe avoidance models for hazardous materials route planning. Transport Sci 34(2):165CrossRef Erkut E, Ingolfsson A (2000) Catastrophe avoidance models for hazardous materials route planning. Transport Sci 34(2):165CrossRef
go back to reference Erkut E, Ingolfsson A (2005) Transport risk models for hazardous materials: revisited. Oper Res Lett 33(1):81–89CrossRef Erkut E, Ingolfsson A (2005) Transport risk models for hazardous materials: revisited. Oper Res Lett 33(1):81–89CrossRef
go back to reference Erkut E, Verter V (1998) Modeling of transport risk for hazardous materials. Oper Res 46(5):625–642CrossRef Erkut E, Verter V (1998) Modeling of transport risk for hazardous materials. Oper Res 46(5):625–642CrossRef
go back to reference Federal Motor Carrier Safety Administration (2007) Final report: designation of highway routes for hazardous materials shipments: literature review. U.S. Department of Transportation, prepared by Battelle Federal Motor Carrier Safety Administration (2007) Final report: designation of highway routes for hazardous materials shipments: literature review. U.S. Department of Transportation, prepared by Battelle
go back to reference Federal Motor Carrier Safety Administration (2008) Guidance document: hazardous materials routing using safety and security criteria. U.S. Department of Transportation, prepared by Battelle Federal Motor Carrier Safety Administration (2008) Guidance document: hazardous materials routing using safety and security criteria. U.S. Department of Transportation, prepared by Battelle
go back to reference Helander M, Melachrinoudis E (1997) Facility location and reliable route planning in hazardous material transportation. Transport Sci 31(3):216–226CrossRef Helander M, Melachrinoudis E (1997) Facility location and reliable route planning in hazardous material transportation. Transport Sci 31(3):216–226CrossRef
go back to reference Huang B, Cheu R, Liew Y (2004) GIS and genetic algorithms for HAZMAT route planning with security considerations. Int J Geogr Inform Sci 18(8):769–787CrossRef Huang B, Cheu R, Liew Y (2004) GIS and genetic algorithms for HAZMAT route planning with security considerations. Int J Geogr Inform Sci 18(8):769–787CrossRef
go back to reference Jin H, Batta R (1997) Objectives derived from viewing hazmat shipments as a sequence of independent Bernoulli trials. Transport Sci 31(3):252–261CrossRef Jin H, Batta R (1997) Objectives derived from viewing hazmat shipments as a sequence of independent Bernoulli trials. Transport Sci 31(3):252–261CrossRef
go back to reference Kang Y, Batta R, Kwon C (2011) Generalized route planning model for hazardous material transportation with var and equity considerations. Working paper Kang Y, Batta R, Kwon C (2011) Generalized route planning model for hazardous material transportation with var and equity considerations. Working paper
go back to reference Kwon C (2011) Conditional value-at-risk model for hazardous materials transportation. In: Jain S, Creasey RR, Himmelspach J, White KP, Fu M (eds) Proceedings of the 2011 winter simulation conference. pp 1708–1714 Kwon C (2011) Conditional value-at-risk model for hazardous materials transportation. In: Jain S, Creasey RR, Himmelspach J, White KP, Fu M (eds) Proceedings of the 2011 winter simulation conference. pp 1708–1714
go back to reference Pruzzo L, Cantet RJ, Fioretti CC (2003) Risk-adjusted expected return for selection decisions. J Anim Sci 81:2984–2988 Pruzzo L, Cantet RJ, Fioretti CC (2003) Risk-adjusted expected return for selection decisions. J Anim Sci 81:2984–2988
go back to reference List G, Mirchandani P, Turnquist M, Zografos K (1991) Modeling and analysis for hazardous materials transportation: risk analysis, routing/scheduling and facility location. Transport Sci 25(2):100–114CrossRef List G, Mirchandani P, Turnquist M, Zografos K (1991) Modeling and analysis for hazardous materials transportation: risk analysis, routing/scheduling and facility location. Transport Sci 25(2):100–114CrossRef
go back to reference Manfredo MR, Leuthold RM (1999) Market risk and the cattle feeding margin: an application of value-at-Risk. Agribusiness 17(3):333–353CrossRef Manfredo MR, Leuthold RM (1999) Market risk and the cattle feeding margin: an application of value-at-Risk. Agribusiness 17(3):333–353CrossRef
go back to reference Mansini R, Ogryczak W, Speranza M (2007) Conditional value at risk and related linear programming models for portfolio optimization. Ann Oper Res 152(1):227–256CrossRef Mansini R, Ogryczak W, Speranza M (2007) Conditional value at risk and related linear programming models for portfolio optimization. Ann Oper Res 152(1):227–256CrossRef
go back to reference Nembhard D, White C III (1997) Applications of non-order-preserving path selection of hazmat routing. Transport Sci 31(3):262–271CrossRef Nembhard D, White C III (1997) Applications of non-order-preserving path selection of hazmat routing. Transport Sci 31(3):262–271CrossRef
go back to reference Nozick L, List G, Turnquist M (1997) Integrated routing and scheduling in hazardous materials transportation. Transport Sci 31(3):200–215CrossRef Nozick L, List G, Turnquist M (1997) Integrated routing and scheduling in hazardous materials transportation. Transport Sci 31(3):200–215CrossRef
go back to reference Patel M, Horowitz A (1994) Optimal routing of hazardous materials considering risk of spill. Transport Res A 28(2):119–132 Patel M, Horowitz A (1994) Optimal routing of hazardous materials considering risk of spill. Transport Res A 28(2):119–132
go back to reference Pflug G (2000) Probabilistic constrained optimization: methodology and applications. Kluwer Academic Publishers, New York Pflug G (2000) Probabilistic constrained optimization: methodology and applications. Kluwer Academic Publishers, New York
go back to reference ReVelle C, Cohon J, Shobrys D (1991) Simultaneous siting and routing in the disposal of hazardous wastes. Transport Sci 25(2):138CrossRef ReVelle C, Cohon J, Shobrys D (1991) Simultaneous siting and routing in the disposal of hazardous wastes. Transport Sci 25(2):138CrossRef
go back to reference Robert Dahlgren CCL, Lawarre J (2003) Risk assessment in energy trading. IEEE Trans Power Syst 18(2):503–511CrossRef Robert Dahlgren CCL, Lawarre J (2003) Risk assessment in energy trading. IEEE Trans Power Syst 18(2):503–511CrossRef
go back to reference Rockafellar R, Uryasev S (2002) Conditional value-at-risk for general loss distributions. J Bank Finance 26(7):1443–1471CrossRef Rockafellar R, Uryasev S (2002) Conditional value-at-risk for general loss distributions. J Bank Finance 26(7):1443–1471CrossRef
go back to reference Saccomanno F, Chan A (1985) Economic evaluation of routing strategies for hazardous road shipments. Transport Res Rec 1020:12–18 Saccomanno F, Chan A (1985) Economic evaluation of routing strategies for hazardous road shipments. Transport Res Rec 1020:12–18
go back to reference Sherali H, Brizendine L, Glickman T, Subramanian S (1997) Low probability–high consequence considerations in routing hazardous material shipments. Transport Sci 31(3):237–251CrossRef Sherali H, Brizendine L, Glickman T, Subramanian S (1997) Low probability–high consequence considerations in routing hazardous material shipments. Transport Sci 31(3):237–251CrossRef
go back to reference Sivakumar RA, Rajan B, Karwan M (1993) A network-based model for transporting extremely hazardous materials. Oper Res Lett 13(2):85–93CrossRef Sivakumar RA, Rajan B, Karwan M (1993) A network-based model for transporting extremely hazardous materials. Oper Res Lett 13(2):85–93CrossRef
go back to reference Sodhi MS (2005) Managing demand risk in tactical supply chain planning for a global consumer electronics company. Prod Oper Manag 14:69–79CrossRef Sodhi MS (2005) Managing demand risk in tactical supply chain planning for a global consumer electronics company. Prod Oper Manag 14:69–79CrossRef
go back to reference Toumazis I, Kwon C (2012) Routing hazardous materials on time-dependent networks using conditional value-at-risk. Working paper Toumazis I, Kwon C (2012) Routing hazardous materials on time-dependent networks using conditional value-at-risk. Working paper
Metadata
Title
Value-at-Risk and Conditional Value-at-Risk Minimization for Hazardous Materials Routing
Authors
Iakovos Toumazis
Changhyun Kwon
Rajan Batta
Copyright Year
2013
Publisher
Springer New York
DOI
https://doi.org/10.1007/978-1-4614-6794-6_5