SOQ Model Formulations

This Chapter, starting from the definition of the logistic cost function defined in Chap. 2, presents the Sustainable Order Quantity (SOQ) model formulation considering product demand and supply lead time firstly as deterministically known and then characterized by stochastic variability. In the stochastic problem, solution procedures are suggested for solving the SOQ problem. Five cases (numerical experiments and industrial full-scale) are presented to test the model. Sensitivity analyses are carried out varying costs, distances, and uncertainty of demand and lead time, thus showing the model capabilities and limitations. Finally, results are discussed and compared with classical EOQ solutions.