CIM Reverse Logistics & Returns 2

Question 1

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

Accepted Answer

Gross margin recovery rate

Answer

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

Question 2

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

Accepted Answer

Returned materials are reintegrated back into the forward supply chain

Answer

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

Question 3

What is 'gatekeeping' in reverse logistics?

Accepted Answer

Restricting unauthorized returns at the point of entry

Answer

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.

Question 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?

Accepted Answer

90%

Answer

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

Question 5

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

Accepted Answer

Direct resale as open-box

Answer

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

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Reverse Logistics & Returns 2