This book introduces new inventory models to support decision-making when cost of externalities
are jointly considered along with costs of logistics. Internalization of cost of externalities
gives rise to new logistics costs estimates and functions which managers researchers
lecturers and students should refer in facing with logistics issues. This book focuses on
freight transports of industrial production systems. Logistics play a key role for industries
since it reveals a critical function designed and managed to pursue economic goals. A large
amount of literature is available providing models which can be used to minimize logistic
costs. However these models usually neglect externalities. New Models for Sustainable
Logistics: Internalization of External Costs in Inventory Management is comprised of three
chapters. Chapter 1 provides a taxonomy of external costs figures as well as data set enabling
the reader to perform reliable estimates of freight transport external costs. To this purpose
a full scale case study is developed. Chapter 2 describes a new sustainable inventory
management model whose cost functions include externalities. The classical 'Economic Order
Quantity' model is re-formulated and the new concept of Sustainable Order Quantity (SOQ) is
defined. Finally in Chapter 3 the SOQ model is formulated for different inventory management
applications referred to both deterministic and stochastic production environments. Numerical
examples are also provided.
