“TEN YEARS WORKING TOGETHER FOR A SUSTAINABLE FUTURE” São Paulo – Brazil – May 24 th to 26 th - 2017 The Bullwhip Effect in Closed Loop Supply Chain: a Systematic Literature Review BRAZ, A.C. a,* , DE MELLO, A.M. a , VASCONCELOS GOMES, L.A. a , NASCIMENTO, P.T.S. a a. School of Economics, Business Administration and Accounting at the University of São Paulo (FEA/USP) * Corresponding author, acarlosbraz@hotmail.com Abstract The bullwhip effect one of the most studied phenomenon in forward supply chains is also growing interest from the academia to be studied in closed loop supply chains. This paper aims to compare the bullwhip effect causes and factors in forward supply chains with those for closed loop supply chains. The methodology used was a systematic literature review of the papers that were published in academic journals and conferences about bullwhip effect in closed loop supply chains. We find that the factor: increasing product return rate to mitigate or decrease the bullwhip effect was quantitatively the most representative, since this factor is fundamentally inherent of the closed loop supply chains dynamics, we have proposed that implementing the closed loop supply chains instead of the forward supply chains can reduce or even eliminating the bullwhip effect . Keywords: closed loop supply chain, bullwhip effect 1. Introduction Forward supply chains (FWSC) involves material flow from manufacturer to the end user, reverse logistics involves reverse product flows from the final user, followed by reprocessing (through recycling, remanufacturing, refurbishing, repairing and/or reusing) the end of life products into a new useable form. If we consider forward and reverse supply chains simultaneously, the result network will construct a closed-loop supply chains (CLSC) (Govindan et al., 2015). CLSC refers to this complete loop—from raw materials to final customers, back for the reprocessing operations, and then once again back to the customer (Quariguasi Frota Neto et al., 2010). A typical CLSC involves collection, inspection/separation, reprocessing, disposal and redistribution activities, CLSC’s often differ with respect to some features and parameters such as product acquisition, returns volume, return timing and quality, test, sort, grade, reconditioning, distribution and selling. Some degree of uncertainty is likely to be associated with these critical stages (Guide & Van Wassenhove, 2002). It is widely discussed in Supply Chain Management, how the uncertainty associated with end customers’ demand affects the whole supply chain, the so called bullwhip effect (BWE) (Forrester, 1961). BWE occurs when the demand variability propagates upstream in an amplified form.