The Research Of Transport Cost Control On "H" Company

The Road Freight Industry is an important part of the national economy, of which theannual output value is considerable. With the speeded-up of life pace, the way of productscirculation have been gradually transforming to modern logistics, and plus the growingdemand of delivering high efficiency and high added value goods from consumers who askfor higher demand about the speed of delivering goods and quality of service. However, thelogistics costs of the Road Freight Industry is so high, which has been the primary problemrestricting the development of the industry.This article is based on researching on Road Freight enterprises, combined with theirbusiness process, analyzed its logistics costs constitution, took transport cost of The RoadFreight enterprises as breakthrough points to model and analyze their transportationoutsourcing and in-sourcing process with GPSSWorld to carry out computer simulation andoptimization for the purpose of reasonably allocating trucks to transport so as to reducetransportation costs and improve economic efficiency.The first chapter is an introduction, based on thinking of The Road Freight Industry’sstatus and trends, represent the purpose, significance and overall framework of this study. Thesecond chapter is a review of past research. Laying a foundation for the remaining chapters byreviewing theory and research of logistics costs and its control. The third chapter focuses onanalysis of source, composition, influence factor of the transportation costs to lay a first stonefor further analysis. The forth chapter analyzed “truck flights” operation, constitution oftransportation costs and its management with “H” company actual operating situation. Thefifth chapter described the tools and methods of this paper, and based on the former analysisto built the transportation costs simulation model and its goal and assumptions. The sixthchapter took deeply quantitative research on transportation costs. Firstly using the “SPSS”software to collate and take chi-square goodness of fit of data obtained in the practice, thenproposed a solution to control transportation costs through having a simulation of “truckflights” process with GPSSWorld. The last chapter summarized the result of this paper,analyzed inadequacies and had a prospect for further research.