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

• We use CVaR as a risk measure in hazmat dynamic routing problems.
• CVaR model offers a flexible framework to the decision makers.
• The proposed model offers the desirable risk-averse attitude without adding complexity.
• An efficient and effective algorithm is proposed and tested in a dynamic network.
• CVaR is proven to be a proper risk measure for hazmat dynamic route decision making.

We propose a new method for mitigating risk in routing hazardous materials (hazmat), based on the conditional value-at-risk (CVaR) measure on time-dependent vehicular networks. The CVaR models are shown to be flexible and suitable for hazmat transportation that can be solved efficiently. This paper extends the previous research by considering CVaR for hazmat transportation in the case where accident probabilities and accident consequences are time-dependent. We provide a numerical method to determine an optimal departure time and an optimal route for a given origin–destination pair. The proposed algorithm is tested in a realistic road network in Buffalo, NY, USA and the results are discussed.