A value-at-risk based approach to the routing problem of multi-hazmat railcars

This paper solves a routing problem of multi-hazmat railcars with consolidation operations in order to avoid serious consequences of hazmat accidents. We develop a bi-level optimization model for this problem, and apply a value-at-risk (VaR) approach to generate route choices. By incorporating the consolidation operations performed among different railway shipments, both the risks incurred at yards and on service legs are integratively …