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
What is 'remanufacturing' and how does it differ from 'refurbishing'?
Answer: Remanufacturing restores products to original specs with a warranty; refurbishing only cleans and tests them
Remanufacturing fully disassembles, rebuilds, and warrants a product to original specifications, while refurbishing involves lighter cleaning, repair, and testing without a full rebuild.
Which of the following best describes a 'zero-landfill' reverse logistics policy?
Answer: No returned material is sent to landfill; all waste is recycled, composted, or converted to energy
A zero-landfill policy requires that all returned materials be diverted from landfills through recycling, energy recovery, composting, or other alternative disposition methods.
What role does 'product serialization' play in reverse logistics?
Answer: It enables tracking of individual returned units through the entire disposition process
Product serialization assigns unique identifiers to individual units, enabling precise tracking of each returned item from receipt through final disposition.
A manufacturer has a 5% field failure rate on 10,000 units sold. Repair cost per unit is $45, replacement cost is $90, and scrap value is $10. What is the minimum total cost of warranty fulfillment if all failures are replaced?
Answer: $40,000
500 units fail (5% × 10,000); replacement cost = 500 × $90 = $45,000, minus scrap recovery 500 × $10 = $5,000; net = $40,000.
Which environmental regulation most directly impacts reverse logistics for batteries and electronics in the US?
Answer: Resource Conservation and Recovery Act (RCRA)
RCRA governs the management of hazardous solid waste including batteries, e-waste, and other materials commonly found in returned electronics.
What is 'cross-docking' in a returns context?
Answer: Transferring returned goods directly from inbound to outbound docks without storage
Cross-docking in returns moves items directly from the receiving dock to the outbound dock for rapid redistribution, minimizing storage time and handling costs.
How does a 'liberal' return policy typically affect customer behavior and inventory management?
Answer: It increases return rates but can boost sales volume and customer loyalty
Liberal return policies increase return volumes and reverse logistics costs but research consistently shows they increase purchase conversion rates and long-term customer loyalty.