Hazardous materials: An inventory model with risk and safety considerations

Abstract

Hazardous materials (HAZMAT) are essential to the economy in different industrial processes for the operation of different machines and systems. However, these materials also represent a risk to people, property, and the environment. A literature review was conducted to observe the approaches and considerations that have been taken into account in previous research related to HAZMAT inventory management. As a result, it was observed that most of the studies do not take into account risk considerations, the presence of fire protection systems, or regulatory compliance. The most common objective of the reviewed articles is to minimize the total inventory cost of the HAZMAT inventories. The main objective of this research is to develop an inventory model that allows the determination of the order quantities of HAZMAT that have to be purchased and the inventory risk level. This model will consider the maximum allowable quantities indicated by the U.S. HAZMAT regulations for transportation, storage, and fire protection systems, to provide regulatory compliance. To create the HAZMAT inventory model, modifications to the classic economic order quantity model have been made considering the existing HAZMAT regulations such as the International Building Code and the 49 C.F.R. by the Department of Transportation. An interactive tool has been developed to allow the user to use the proposed model. In addition, the proposed HAZMAT inventory model with risk and safety considerations will allow users to understand the impact of the different inventory conditions such as the type of occupancy of the facility and the type of fire protection system on the order quantity and the inventory risk level.