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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)

Abstract

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.

Keywords

budget allocation degree of risk reduction percentage complete LP 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

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

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