Study on Logistics Distribution Simulation Based on System Dynamics

The logistics distribution´s costs account for the proportion of the total cost of logistics is the highest, and its rationalization will bring tremendous business benefits. This paper uses system dynamics theory, Firstly, conduct the system boundaries analysis and causality analysis, build out of the system dynamics model and the equations , which will be closer to reality; then combines the case to conduct computer simulation, and analyzes its simulation results. The results show that logistics distribution system model based on system dynamics is more realistic and easy to operate, businesses can use this model to rationalize the logistics distribution, followed by greater efficiency and lower logistics costs.