Practice Test Geeks(CIM) Certified Inventory Manager Practice Test
← All CIM Flashcard Decks

Reverse Logistics & Returns Flashcards

7 cards from real CIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Reverse Logistics & Returns flashcards as text

  1. Which metric best measures the financial efficiency of a reverse logistics operation?

    Answer: Gross margin recovery rate

    Gross margin recovery rate measures how much value is recovered from returned goods relative to their original cost, directly reflecting financial efficiency.

  2. In a closed-loop supply chain, what distinguishes it from a traditional reverse logistics program?

    Answer: Returned materials are reintegrated back into the forward supply chain

    A closed-loop supply chain systematically reintegrates returned or recovered materials back into the production or distribution process.

  3. What is 'gatekeeping' in reverse logistics?

    Answer: Restricting unauthorized returns at the point of entry

    Gatekeeping is the process of screening returns at the point of customer contact to prevent unauthorized or invalid items from entering the reverse supply chain.

  4. A company receives 500 returned units monthly. 200 are resold as-is, 150 are refurbished, 100 are recycled, and 50 are landfilled. What is the diversion rate from landfill?

    Answer: 90%

    Diversion rate = (500 − 50) / 500 = 450/500 = 90%; only 50 units go to landfill.

  5. Which disposition option typically yields the highest financial recovery for returned electronics?

    Answer: Direct resale as open-box

    Direct resale as open-box or refurbished products recovers the most value because the product retains its functionality and market appeal.

  6. What is a 'return merchandise authorization' (RMA) system primarily designed to do?

    Answer: Control and track the return process from initiation to disposition

    An RMA system controls and tracks each return from authorization through receipt and final disposition, ensuring process compliance and data capture.

  7. Under Extended Producer Responsibility (EPR) regulations, who bears primary responsibility for end-of-life product management?

    Answer: Original equipment manufacturers

    EPR regulations place the financial and operational burden of end-of-life management on the original equipment manufacturers (OEMs) who created the product.