CVaR Model and Algorithm for the Risk Assessment Problem of Hazmat Multi-Modal Transportation

Abstract

In order to provide different result to the decision makers with different risk preference of hazardous materials transportation adaptively, the authors bring conditional value-at-risk (CVaR) modal into the risk assessment question of multimodal transportation of hazardous materials. First the authors analyzed the entire process of multimodal transportation of hazardous materials systematically, and then the authors built the CVaR model, and tried to change the traditional model into a new optimization model. According to the characteristics of the model, the authors designed an algorithm based on node-arc. A numerical example shown that CVaR model of different confidence level could be solved by the algorithm quickly and efficiently. The results show that the CVaR model could cover risk preference from risk-neutral to risk-averse, and it is a more proper and flexible risk measure for multimodal transport of hazardous materials decision making.