A logistics application of simulation to determine distribution costs resulting from a forward warehouse operation : Often it is difficult to compute the cost of a forward warehouse operation given uncertain demand and complex billing systems. The simulation to be presented serves as a decision support system which aids logistics management in determining distribution costs associated with a forward warehouse based on transportation, warehouse and inventory considerations. A unique aspect of the simulation is that it is a microcomputer spreadsheet application using technology common to many business environments. Practical uses of the simulation include such corporate policy issues as warehouse location, cost increase evaluation, customer service projections and analysis of different billing systems.