| After years of rapid development of Central Henan urban agglomeration, their economic level has been substantially upgraded, which endow them with a solid core within Henan Province, and certain agglomeration effects. However, the relatively lagging development of logistics industry cannot keep pace with the economy. Although it has developed to some extent, there still exist such problems as chaotic management, weak low overall capability and inefficient operation, which suggest that it cannot satisfy the urgent needs rapid economic development. The economic development would not go independently without the support of logistics industry. Then there emerges a series of questions to be resolved, as which elements exert negative influence on its development and how to make appropriate strategies to boost its development.With the method of System Dynamics, this essay studies on the operating regulations, development mechanism and relative elements. Firstly, based on the analysis of relevant social and economic index, it summarizes the status quo of Central Henan urban agglomeration's logistics industry and points out existing problems. Secondly, with the construction of System Dynamics Model and systematic analysis of its development, the essay drafts the Cause Effect and System Flow Diagram, and constructs System Dynamic Equation. Thirdly, the essay carries on targeted policy simulation with the use of System Dynamic software, and concludes that the coordinated development of fixed assets investment, capital conversion rate and logistics operating efficiency is the most beneficial for the development of Central Henan urban agglomeration's logistics industry. Lastly, in accordance to the existing problems, and with the simulation results, the essay concludes with four suggestions as upgrading outside environment, strengthening investment construction, integrating existing resources and enhancing operating efficiency. |
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