Simulation Modelling of Urban Logistics: Case of Surabaya Sudiana Wirasembada, Nyoman Pujawan, Niniet Indah Arvitrida, Arief Rahman, Moses L. Singgih Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia E-mail: pujawan@ie.its.ac.id Abstract Urban logistics deals with the flow of goods within an urban area. Most of the actitivities in the context of urban logistics are last mile distribution of goods, normally involving distribution centers, many retailers, and short-haul transportation. With the increasing number and spread of modern retailers, the mixing of freight activity and mobility of the resident, and the pressure to increase services, reduces pollution, and minimise inteference of goods movements with people flows, the management of urban logistics is facing serious challenges. In this study, we develop a simulation model of urban logistics, with a case study of Surabaya, a rapidly developing large city in Indonesia. More specifically, we model the movement of goods to the city to satisfy demand of over 200 modern retailer shops selling consumer goods products that are now operating in the city. This simulation model is developed based on the previous model by Boerkamps (1999). The first step in developing the model was the construction of a map of major roads. The second step is locating each retailer shop which represents the demand points. Next, we locate the supply points which consist of major warehouses or distribution centers, container port, and major road entry points to the city. The demand parameters, alternative paths of delivery, and the speed of delivery in each road were defined based on empirical data. The simulation was then run for a number of different scenarios. The average and standard deviation of delivery travel time from supply to demand points and total mileage of delivery were recorded as performance indicators. The simulation experiments suggest limiting delivery time for goods and segmenting the city into regions could improve the average as well as the variation of speed of the delivery time. Keywords: urban logistics, simulation model, modern retailers, Surabaya