A discrete-flow, closed-loop conveyor system with multiple loading and unloading stations is considered. An inherent capability of such a system is that certain cyclic variations in the input and output flow rates can be accommodated through the storage feature of the closed loop. The system is reduced to an equivalent one-station system for which the balance of flow is described by a difference equation. The solution of this equation yields feasibility conditions as well as guidelines for conveyor design optimization and for conveyor operation. A numerical example solution for a three-station conveyor is included.