Decision making in reverse logistics using system dynamics

Reverse logistics is a modern field of consideration, research and study, providing helpful information on the operation of the closed-loop supply chain. Although the starting point of this field is traced back to the early 90s, no standard method has been suggested, neither prevailed. The purpose of this paper is to introduce a new approach on the study of reverse logistics. It is actually a review on how System Dynamics (SD) can be a helpful tool when it is used in the reverse logistics field. The paper explains the basic theory of the system modelling and next it utilizes the reverse logistics model. Finally, an illustrative example shows how SD modeling can be used to produce a powerful long-term decision-making tool.