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The closed loop supply chain is a new field in the recent years, which involves suppliers, manufacturers, distributors, retailers, consumers, recyclers and other types of entities and their related series of business activities. Closed-loop supply chain presents a complex network structure. In this paper, system dynamics is applied to study the dynamic behavior of complex theoretical method, I will try to use qualitative analysis and quantitative simulation to study dynamic mechanism from the perspective of closed-loop supply chain management. Through analysis of its key characteristic behavior patterns-the bullwhip effect, to explore recycling reverse logistics supply chain dynamics of the positive impact.First, we should clear this modeling purposes of closed-loop supply chain system dynamics, and designate the boundaries of the closed-loop supply chain system by analyzing the characteristics of closed-loop supply chain. On this basis, a series of assumptions to simplify the model should be proposed, which can highlight the research questions. Second, we will build a universal applicability of the closed-loop supply chain system dynamics simulation model, and test the model in order to match the real operating mechanism. Finally, the closed-loop supply chain system dynamics models should be simulated under different scenarios, to analysis the change of the original forward supply chain dynamics in different ratio of recycling waste products. For the phenomenon of the supply chain members at all levels needs bullwhip effect generate, we will analyze the causes, propose measures to alleviate the bullwhip effect, and by improving the model to compare the value of the bullwhip effect on before and after the members at all levels, which could provide reference to control bullwhip effect in supply chain.
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