CSCP Logistics and Reverse Flow 2 — Questions and Answers
Question 1: A manufacturer receives returned electronics from customers. Which reverse logistics activity involves disassembling products to recover valuable components for reuse?
- Remanufacturing
- Cannibalization (Correct answer)
- Refurbishment
- Recycling
Correct answer: Cannibalization
Cannibalization involves disassembling returned products to harvest usable components or parts for use in other products or repairs.
Question 2: Which transportation mode offers the LOWEST cost per ton-mile for bulk commodity shipments over long distances?
- Truckload (TL)
- Rail (Correct answer)
- Air freight
- Less-than-truckload (LTL)
Correct answer: Rail
Rail transportation offers the lowest cost per ton-mile for bulk commodities over long distances due to its high capacity and fuel efficiency.
Question 3: A company's returned goods policy requires items to be inspected, sorted, and routed to disposition. What is the term for the central facility where this processing occurs?
- Cross-docking terminal
- Returns processing center (Correct answer)
- Break-bulk facility
- Merge-in-transit hub
Correct answer: Returns processing center
A returns processing center (also called a returns center) is a dedicated facility for receiving, inspecting, sorting, and routing returned merchandise to appropriate dispositions.
Question 4: Under the Council of Supply Chain Management Professionals (CSCMP) definition, which cost is included in total logistics cost?
- Marketing and advertising
- Inventory carrying cost (Correct answer)
- Product development cost
- Customer acquisition cost
Correct answer: Inventory carrying cost
Inventory carrying cost — including capital, storage, risk, and service costs — is one of the primary components of total logistics cost per CSCMP definitions.
Question 5: A shipper negotiates a contract with a 3PL to handle all warehousing and distribution. Over time, the shipper loses internal logistics expertise. This risk is BEST described as:
- Capacity risk
- Core competency erosion (Correct answer)
- Demand variability risk
- Transportation cost inflation
Correct answer: Core competency erosion
Outsourcing logistics to a 3PL can cause core competency erosion when the firm loses internal skills and knowledge over time.
Question 6: Which metric measures the percentage of customer orders shipped complete, on time, and damage-free on the first attempt?
- Fill rate
- On-time delivery rate
- Perfect order rate (Correct answer)
- Order cycle time
Correct answer: Perfect order rate
The perfect order rate measures the percentage of orders that are delivered complete, on time, damage-free, and with accurate documentation.
Question 7: When a retailer returns unsold seasonal merchandise to the manufacturer for credit, this flow of goods is an example of:
- Forward logistics
- Lateral transshipment
- Reverse logistics (Correct answer)
- Cross-docking
Correct answer: Reverse logistics
Reverse logistics covers the movement of goods back upstream in the supply chain, including commercial returns of unsold merchandise.
CSCP Logistics and Reverse Flow 2
A manufacturer receives returned electronics from customers.
Which reverse logistics activity involves disassembling products to recover valuable components for reuse?