Decision Making on the Optimization of Budget Allocation for Safety
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.
Keywordsbudget allocation degree of risk reduction percentage complete LP
Unable to display preview. Download preview PDF.
- 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
- Sato, Y.: How to Measure Human Perception in Survey Questionnaires. International Journal of the Analytic Hierarchy Process 1(2), 64–82 (2009)Google Scholar