Which of the following costs are likely to be incurred in reverse logistics?
Which of the following costs are likely to be incurred in reverse logistics?
Reverse logistics involves the processes associated with returning products from customers back to the seller or manufacturer. This can include handling returns, repairs, recycling, and disposal. Warranty costs arise when products are returned under warranty for repairs or replacements. Restocking costs occur when returned goods are inspected, processed, and returned to inventory for resale. These activities are directly tied to the reverse flow of products, making warranty and restocking costs highly relevant in reverse logistics.
warranty costs are significant as they involve repairing, refurbishing, or replacing returned products under warranty. Restocking stocks costs associated with processing returned items, which may include inspection, repackaging, and returning the items to inventory if they are resalable.
Option C is the answer
The costs that are likely to be incurred in reverse logistics include warranty and restocking costs. Reverse logistics is the process of managing the return and disposal of products, including those that are defective or no longer needed by customers. In this context, warranty costs refer to the cost of repairing or replacing products that are returned due to defects or quality issues, while restocking costs refer to the cost of receiving, inspecting, and re-stocking returned products.
Why not C?