Abstract
Freight consolidation is a distribution strategy which can reduce transportation costs associated with small shipments. Traditional model of freight consolidation adopts quantitative analysis. In this paper, a method of system dynamics is used to analyze the operation status of influence factors and search the advantage of implementing freight consolidation. A system dynamic simulation model of freight consolidation is built by Vensim version 5.4d. The outputs show that freight consolidation tends to increase the freight capacity of single vehicle, the vehicle loading ratio, and the profit of freight. It can also decrease the amount of freight vehicle cost and the freight cost of goods.
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