A system and method for determining dynamically changing distributions of vehicles in a vehicle system are disclosed. The system and method determine handling parameters of the vehicle system. The handling parameters are determined for different distributions of the vehicles among different groups at different potential change points along a route. The system and method also determine whether to change the distributions at potential change points based on the handling parameters. Based on determining that the distributions are to change, a selected sequence of changes to the distributions is determined at one or more of the potential change points along the route. Change indices are generated based on the selected sequence. The change indices designate times and/or the one or more potential change points at which the distributions changes. The vehicles included in a common group have common designated operational settings while the vehicles are in the common group.