Abstract
This paper proposes a commodity distribution model that views commodity flows as the result of interplay between the shipper and customer of commodities. The commodity flows are originated from the customer who makes decision on purchasing a commodity from each of the suppliers. The model utilized a discrete choice framework accommodating the spatial interactions among customers in choice decision. The model is applied to the urban goods movement in the Tokyo Metropolitan Area. The results show significant improvement of the model that considers the spatial effects which confirms the assumption that the decision of customers is influenced by the others.
