A system dynamic model for an open-loop reverse logistic channel

The purpose of this study is to analyze the external and internal factors influencing the system behaviors and the collection and remanufacturing capacity planning issues in an open-loop reverse logistic channel via a system dynamic model. The external factors include legislation (subsidy provided by the government), quality level of the used products collected, and the demand patterns of the secondary market; while the internal factors include the adjustment of the capacity of recovery facilities. The constructed system dynamic model can be effectively used to analyze and evaluate different policies which affect the capacity planning for the reverse logistics system.