Abstract
Hazardous material transportation problems have widely been studied in the past especially in the context of routing, scheduling, and network design problems. Yet, the combined hazardous material facility location-routing problem has not been studied adequately. We emphasize that locating a hazardous material facility is a rich process, and a good site can mitigate the potential transportation risk beforehand. A methodological framework is proposed which allows evaluation and ranking of potential sites based on hierarchical relationship utilities. The proposed method attempts to improve the risk functions and applies a stochastic analysis to measure the risk, which relaxes some assumptions in deterministic analysis, and is more realistic while avoiding overestimation of the risk. The study covers multi-objective optimization considering the decision-makers' preferences on network segments and risk to the population and water bodies. Potential hazardous material facility sites' rank is determined by the probability of optimality and one-to-one relationship utilities with the points of interests. Results show that the proposed stochastic analysis offers more flexibility to select and rank the potential sites.