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<p class="Abstract"><strong><em><span lang="EN-US">Purpose:</span></em></strong><span lang="EN-US"> By studying the case of a Changsha engineering machinery manufacturing firm, this paper aims to find out the optimization tactics to reduce enterprise’s logistics operational cost.</span></p> <p class="Abstract"><strong><em><span lang="EN-US">Design/methodology/approach:</span></em></strong><span lang="EN-US"> This paper builds the structure model of manufacturing enterprise’s logistics operational costs from the perspective of inter-firm network and simulates the model based on system dynamics.</span></p> <p class="Abstract"><strong><em><span lang="EN-US">Findings:</span></em></strong><span lang="EN-US"> It concludes that applying system dynamics in the research of manufacturing enterprise’s logistics cost control can better reflect the relationship of factors in the system. And the case firm can optimize the logistics costs by implement joint distribution.</span></p> <p class="Abstract"><strong><em><span lang="EN-US">Research limitations/implications:</span></em></strong><span lang="EN-US"> This study still lacks comprehensive consideration about the variables quantities and quantitative of the control factors. In the future, we should strengthen the collection of data and information about the engineering manufacturing firms and improve the logistics operational cost model.</span></p> <p class="Abstract"><em><strong>Practical implications:</strong></em> This study puts forward some optimization tactics to reduce enterprise’s logistics operational cost. And it is of great significance for enterprise’s supply chain management optimization and logistics cost control.</p> <p class="Abstract"><strong><em><span lang="EN-US">Originality/value:</span></em></strong><span lang="EN-US"> Differing from the existing literatures, this paper builds the structure model of manufacturing enterprise’s logistics operational costs from the perspective of inter-firm network and simulates the model based on system dynamics.</span></p>