Exploring Closed Loop Supply Chain for Optimisation of Environmental Issues & Total Profit Using System Dynamics

Nowadays, as companies are adopting strategies that are in a better balance with environmental friendly practices, so "Going Green" is becoming an effective strategy in terms of costs benefits and customer satisfaction. The focus of this paper is on the study of recollection in Closed Loop Supply Chain (CLSC), using system dynamics approach, by identifying and establishing relationships between variables in a CLSC system. A system dynamic model has been developed to simulate the influence of recollection on various factors like demand, sales, uncontrollable disposal, recycling rate, serviceable inventory, and the total profit. The results have indicated that, on a long term basis, closed loop supply chain can be successfully adopted to improve the cost benefits and to reduce the uncontrollable product disposals.