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This paper investigated the interaction effects between inventory and transportation strategies in the logistics network. Demand volumes and shipping sizes were simulated as part of a new conceptual model using a discrete event simulation by minimizing the total logistics cost in the supply chain. The experiments indicate that the full truckload scenario leads to cost efficiency and the larger demand size results in smaller cost per unit based on economies of scale. Considering the interactiondoi:10.17265/1934-7359/2013.05.014 fatcat:uwnhfgy575f2bkstbwfurtvl5q