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.　©2010　IEEE.