Decision Making on the Optimization of Budget Allocation for Safety

  • Yuji Sato
Conference paper
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 15)


Based on the quantitative model of risk assessment quantifying intangible factors in risk assessment, optimizing a budget allocation for safety in a manufacturing company was the objective of this paper.Developing a quantitative model for risk assessment in conjunction with decision-making on strategic investments for safety is complicated because of the subjective factors that enter into the inspection of a plant within a company and the choice of appropriate safety measures for the plant. The author’s previous study addressed a part of this problem, and showed how to quantify inherent risks within a plant.Based on the study, the issue of the optimization of the budget allocation for safety measures was addressed by approximating a budget allocation model as a linear programming problem in this paper. A case study was carried out in a chemical company in Japan as an example, which guided how to optimize budget allocation for safety in the company.


budget allocation degree of risk reduction percentage complete LP 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Beaumont, N.B.: Investment decisions in Australian manufacturing. Technovation 18(11), 689–695 (1999)CrossRefGoogle Scholar
  2. Frank, L.: Approaches to risk and uncertainty in the appraisal of new technology capital projects. International Journal of Production Economics 53(1), 21–33 (1998)Google Scholar
  3. O’Brien, C., Smith, S.J.E.: Design of the decision process for strategic investment in advanced manufacturing systems. International Journal of Production Economics 30-31, 309–322 (1993)CrossRefGoogle Scholar
  4. Sato, Y.: Comparison between Multiple-choice and Analytic Hierarchy Process: Measuring Human Perception. International Transactions in Operational Research 11(1), 77–86 (2004)MATHCrossRefGoogle Scholar
  5. Sato, Y.: How to Measure Human Perception in Survey Questionnaires. International Journal of the Analytic Hierarchy Process 1(2), 64–82 (2009)Google Scholar
  6. Sato, Y.: A Quantitative Model for Budget Allocation for Investment in Safety Measures. In: Watada, J., Phillips-Wren, G., Jain, L.C., Howlett, R.J. (eds.) Intelligent Decision Technologies. SIST, vol. 10, pp. 57–64. Springer, Heidelberg (2011)CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  • Yuji Sato
    • 1
  1. 1.GraduateSchool of Policy ScienceMieChukyo UniversityMatsusakaJapan

Personalised recommendations