Logical data model represents the flow of data in an organization. It will give a clue on how the information within an organization are related. It does not represent the physical data structure in the company.
In microstrategy architect , we define logical data model within the tool. Then we map this logical data model to physical data warehouse tables. Microstrategy architect plays the role of translating this logical data model to queries that database/users can understand. When user runs a report Microstrategy engine generates the appropriate SQL to retrieve the necessary data from the data warehouse. The schema objects that are created can be used to create application objects such as matrics , filters ,templates, reports and documents.