An Integrated Supply Chain Modeling and Simulation Based on System Dynamics

An integrated supply chain includes original manufacture and remanufacture. It can collect the used goods and close the material cycles. In this paper, an integrated supply chain with recycling are designed based on system dynamics. In this model, used goods can be collected by both collectors and retailers. The simulation proves that the choice of perfect collection style is based on the leader of the market. If the market is led by manufacture, the used goods must be collected so as to maximize its profit. But if the market is led by the retailer, the best policy is that the used goods must be collected by the retailer itself. The retailer will not be benefited from the collector´s collection.