A Dynamic Operation Model for a Class of Closed-Loop Logistic System

The operation process for a class of closed-loop logistic system is considered. This system contains multiple suppliers, manufactories, distribution centers and customers. Based on the early research results, the integration of forward and reverse logistics was investigated. A dynamic operating model is constructed to minimize the total cost of the transportation and the operations by optimally selecting the places of manufactories, distribution centers with the respective operation units. A numerical example is designed, and the results shown that the proposed model is able to support the logistic decisions in a closed-loop logistic system efficiently and accurately.