Study On Copper Processing Enterprises’ Logistics Cost Control Based On System Dynamics

With the rapid development of world economy, almost all the enterprises are confronted with the huge economic efficiency and unprecedented fierce competition situation from the world economic integration. Most industries are faced with excess capacity and oversupply situation. In this case, manufactures and commercial enterprises gain competitive advantage by reducing logistics costs and improving service level. But, there is trade-off relation between the logistics cost and logistics service. The purpose of controlling logistics cost is to explore the equilibrium states between reducing logistics costs and improving service level. Only after that can enterprises reduce costs effectively and enhance the competitiveness and improve the social and economic benefits.Nowadays, C hina has become the main copper processing and consuming countries in the world. The number of copper processing enterprises occupies the first place in the world. As for the copper processing enterprises in C hina, how to maximize the profits of the enterprise by preventing all kinds of unfavorable factors and using the correct decision strategy in complex marketing setting which is a very important question. This paper summarizes the characteristics、component part and influencing factors of copper processing enterprises’ logistics cost system by analyzing the general relation of manufacturing enterprises’ logistics cost systems and considering copper processing enterprises’ operation characteristics of their own. This paper build system dynamics model of copper processing enterprises’ logistics cost system by using Vensim after a nalyzing the causality between the various subsystems and variables about copper processing enterprises’ logistics cost system. Next,this paper simulate and analyze the dynamic movement process of copper processing enterprises’ logistics cost system by inputting the data from JW NEW ALLO Y MARERIAL CO.,LTD. Analyze the fluctuation of total logistics cost of copper processing enterprises and main factors, identify cost control direction and put forward logistics cost control optimization strategy of copper processing enterprises in the end of the paper.