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
Which of the following is a primary driver of consumer product returns in e-commerce?
Answer: Product does not match online description or images
In e-commerce, the most common return driver is product misrepresentation—items that don't match photos, descriptions, or size charts.
What does 'advance exchange' mean in a returns context?
Answer: A replacement unit is shipped before the defective unit is returned
Advance exchange (or advance replacement) ships a new unit to the customer immediately, improving satisfaction while the defective unit is returned separately.
How does 'vendor-managed returns' differ from standard returns processing?
Answer: Vendors handle disposition decisions and logistics for returned goods
In vendor-managed returns, the supplier takes responsibility for disposition decisions and reverse logistics execution, relieving the retailer of those costs and decisions.
A retailer's return rate is 18% and average order value is $120. If 60% of returns are resold at 70% of original price, what is the net recovery per returned dollar?
Answer: $0.42
60% of returns resold at 70% value = 0.60 × 0.70 = 0.42 recovered per returned dollar.
What is 'secondary market' disposition in reverse logistics?
Answer: Selling returned goods through discount or liquidation channels
Secondary market disposition involves selling returned or excess inventory through discount retailers, liquidators, or auction channels below primary market prices.
Which reverse logistics KPI measures how quickly returned products are processed and made available for resale?
Answer: Cycle time to resale
Cycle time to resale measures the elapsed time from receipt of a return to when it becomes available for resale, directly impacting recovered value.
In reverse logistics, what is a '3PL returns center'?
Answer: An outsourced facility that processes, sorts, and disposes of returned goods
A 3PL returns center is a third-party operated facility that physically handles receipt, inspection, sorting, and disposition of returned merchandise on behalf of a retailer or manufacturer.