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With the development of China’s economy, the demand of timber is growing. But the forest resources of our country is scarce, the per capita occupancy volume is low. Therefore, more people pay attention to effectively solve China’s commercial timber gap in case of ensuring the ecological environment, and use the limited forest resources to meet the demands of timber products with a low cost.In this paper, logistics cost of timber production was analyzed based on the theory of system dynamics from the view of system. A summary of basic theory of the timber production logistics cost was conducted, and subsystem model was built by analyzing the factors of system and their logical relationships. The production situation of a Forestry Bureau in2010was simulated by specific value assignment and testing effectiveness of the model.Results showed that, the unit cost of each subsystem changed along with the natural condition in winter. In terms of the production operations in cutting area, the skidding distance decreased while the fixed cost declined. When the skidding distance in this model decreased from600m to450m, the fixed cost got a reduction of2.53%. The fixed cost reduced2960.27yuan when the average skidding distance increased with1m3/d. The main factors affecting the cost of timber transportation were vehicle dynamic load utilization coefficient, stroke utilization coefficient, increase of technical velocity, loading and unloading time, and rest time. The simulation results explained that the timber transportation fixed cost reduced0.026yuan/m3· km when the vehicle dynamic load utilization coefficient increased with0.1since the working time utilization coefficient was constant and the other conditions were remained. The timber transportation fixed cost reduced0.023yuan/m3· km when the working time utilization coefficient increased with0.1since the vehicle dynamic load utilization coefficient was constant and the other conditions were remained. Timber storage cost was mainly affected by the unloading selecting and stacking rate. The simulation results showed that the unloading selecting and stacking cost of unit timber decreased0.0051yuan when the unloading selecting and stacking rate increased with lm3/d.Key factors of the unit cost were analyzed, corresponding measures and methods were proposed for reducing the timber production logistics cost. It provided a reasonable basis for planning the timber production.