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Logistics and Reverse Flow Flashcards

7 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A manufacturer receives returned electronics from customers. Which reverse logistics activity involves disassembling products to recover valuable components for reuse?

    Answer: Cannibalization

    Cannibalization involves disassembling returned products to harvest usable components or parts for use in other products or repairs.

  2. Which transportation mode offers the LOWEST cost per ton-mile for bulk commodity shipments over long distances?

    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.

  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?

    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.

  4. Under the Council of Supply Chain Management Professionals (CSCMP) definition, which cost is included in total logistics cost?

    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.

  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:

    Answer: Core competency erosion

    Outsourcing logistics to a 3PL can cause core competency erosion when the firm loses internal skills and knowledge over time.

  6. Which metric measures the percentage of customer orders shipped complete, on time, and damage-free on the first attempt?

    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.

  7. When a retailer returns unsold seasonal merchandise to the manufacturer for credit, this flow of goods is an example of:

    Answer: Reverse logistics

    Reverse logistics covers the movement of goods back upstream in the supply chain, including commercial returns of unsold merchandise.