Answer to Question 1
The effective and efficient management of reverse flows in a supply chain requires the careful consideration of a number of key activities or issues. The Reverse Logistics Educational Council has recommended careful consideration of the following:
AvoidanceProducing high-quality products and developing processes to minimize or eliminate returns
GatekeepingChecking and screening merchandise at the entry point into the reverse flows process to eliminate unnecessary returns or minimize handling
Reducing reverse cycle timesAnalyzing processes to enable and facilitate compression of time for returns to enhance value recapture
Information systemsDeveloping effective information systems to improve product visibility,
reduce uncertainty, and maximize economies of scale.
Returns centersDeveloping optimum locations and facility layouts for returns centers to facilitate network flow
Remanufacture or refurbishmentPrepar ing and repairing a product for resale as is usually done in closed loop supply chains to maximize value recapture
Asset recoveryClassifying and disposing of returned items, surplus, scrap, and obsolete items to maximize returns and minimize cost
PricingNegotiating the best price for products being returned and resold
OutsourcingConsider ing a relationship with a third-party organization to handle and manage reverse flows in cases where existing personnel, infrastructure, experience, or capital may not be adequate to implement a successful program
Zero returnsDeveloping a policy to exclude returns by giving a returns allowance or destroying the product in the field
Financial managementDevelopin g guidelines and financial procedures to properly account for charges against sales and related financial issues when items are returned by customers
Answer to Question 2
False