Abstract
This research proposes a closed-loop supply chain model which represents not only traditional forward supply chains for the generation of products but also reverse supply chains for the reuse of used products. The proposed model consists of four model components, these are clients, manufacturers, suppliers, and remanufacturers. Remanufacturers receive used products from clients and provide reusable parts to manufacturers. These model components modify their production schedules and negotiate with each other in order to determine suitable prices and delivery times of ordered products. Remanufacturers send orders for used products to clients and stimulate discarding the products, in order to control the balance of demand and supply of reusable parts. A prototype of simulation system for closed-loop supply chains was developed to verify the effectiveness of the proposed closed-loop supply chain model.