A System Dynamics Model for Closed Loop Supply Chain in a vehicle manufacturer

Recently, due to environmental, economical, legal and social factors, reverse logistics and closed-loop supply chain issues have attracted attention from manufacturers. In that phase, the original product is no longer produced and the sources of new parts are often limited. Decision makers have to choose when to buy new parts, when to recover used parts and either recover used part by remanufacturer or outsource them to remanufacturing subcontractors. In this paper we developed a system dynamics model that provides an evaluation for various scenarios to control closed-loop supply chain.