A multicriteria knapsack approach to economic optimization of industrial safety measures

• Published in: Safety science Vol. 51; no. 1; pp. 354 - 360
• Main Authors: Caputo, Antonio C., Pelagagge, Pacifico M., Salini, Paolo
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier India Pvt Ltd 01.01.2013; Elsevier
• Subjects: Biological and medical sciences; Cost minimization; Cost-benefits analysis; Knapsack model; Mathematical programming; Medical sciences; Miscellaneous; Public health. Hygiene; Public health. Hygiene-occupational medicine; Risk reduction; Safety measures selection; Risk reduction; Cost-benefits analysis; Cost minimization; Safety measures selection; Mathematical programming; Knapsack model; Multicriteria analysis; Selection; Economic optimization; Industrial plant; Risk; Secondary sector; Cost benefit analysis; Modeling; Knapsack problem; Industry; Reduction; Safety measure; Health economy; Risk factor; Models
• ISSN: 0925-7535; 1879-1042
• DOI: 10.1016/j.ssci.2012.08.002

► We present a methodology for optimal choice of safety measures in industrial plants. ► A knapsack linear programming model allows utility maximization. ► An optimal portfolio of safety measures complying with a limited budget is obtained. ► The method allows quick multiple-criteria ranking for decision making. ► It can be easily utilized by practitioners using spreadsheet software. The selection of safety measures to be applied in an industrial plant to reduce risk to an acceptable level is a critical task for safety engineers. However, to select a portfolio of safety measures is quite hard as a number of different hazards have to be counteracted simultaneously and a wide range of preventive or protective measures can be chosen, including either technical, administrative and managerial actions, within the constraints of a given budget. In this paper a multi-criteria “knapsack” model is described to help safety analysts in selecting the most cost-effective safety measures to be adopted. The problem is formulated as that of maximizing the utility of the portfolio of safety measures subject to a number of constraints including a maximum allowable budget. In the paper at first the problem formulation is given as a knapsack model, then the approach to compute the utility level of a given portfolio of safety measure is described utilizing a multi-criteria method. Finally, an application example is presented and the advantages and disadvantages of the method are discussed.