Question
Question 29 of 50 To create an effective reverse logistics system, what two things should you consider? Returns will have little impact on your current inventory levels. Managing returns requires a separate distribution center. Reverse logistics can disrupt your order fulfillment process. The cost of processing a return can be double the order fulfillment costs. Returns can be forecasted and planned for in advance.
Answer
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(269 Votes)
Zayne
Master · Tutor for 5 years
Answer
- Managing returns requires a separate distribution center.- The cost of processing a return can be double the order fulfillment costs.
Explanation
To create an effective reverse logistics system, several key factors should be considered. Notably:- Managing returns often necessitates a separate distribution center to handle the products efficiently, as the flow of returns can differ from regular shipments.- The cost of processing a return can often be significantly higher than the initial order fulfillment, sometimes up to double. This is due to the added complexity and resources needed to inspect, restock, and possibly refurbish returned items.