In this paper, we focused on the loop distribution system to solve the international issues of energy depletion and global warming. The conventional method of reconfiguration of distribution system was moving open points of switches from an actual switch position to another, while an appropriate switch must be opened to preserve the radial structure and this procedure is continued til there is no further loss reduction. However, the loop distribution system is the best optimization method to minimize loss than the other methods which is preserving radial structure. So we analyzed 3 types of loop distribution system upgraded from radial distribution system by changing normally open switch to normally closed switch. The simple 3 types of model system for simulation were composed, and each types of loop system were simulated in accordance with varying parameters. As a result of simulations, the loss reduction was different for each types of loop distribution system and each loop types have constraints for composing loop distribution system. The algorithms propose the method how to construct loop distribution system regarding constraints. Type I that needs least requirements get least loss reduction and Type III that needs most requirements get maximum loss reduction. On the other hand, Type I was most feasible distribution system to be realized.