What is reverse logistics?

What is reverse logistics?

• A. Processes for returns, repairs, recycling, and disposal of products.
• B. The forward movement of goods from suppliers to customers.
• C. The process of forecasting demand.
• D. The system for setting product prices.

Answer: (A)

Reverse logistics covers the activities that handle products after the initial sale—returns, repairs, refurbishing, recycling, and proper disposal. It focuses on the backward flow of goods and aims to recover value and manage end-of-life processes. For example, when a customer returns a product, the company may inspect it, repair or refurbish it for resale, or recycle components. This approach helps with cost recovery, customer service, and environmental responsibility. Moving goods from suppliers to customers is forward logistics, not reverse. Forecasting demand is about predicting how much to stock, and setting product prices is about pricing strategy. Those areas deal with different parts of the supply chain.

Reverse logistics covers the activities that handle products after the initial sale—returns, repairs, refurbishing, recycling, and proper disposal. It focuses on the backward flow of goods and aims to recover value and manage end-of-life processes. For example, when a customer returns a product, the company may inspect it, repair or refurbish it for resale, or recycle components. This approach helps with cost recovery, customer service, and environmental responsibility.

Moving goods from suppliers to customers is forward logistics, not reverse. Forecasting demand is about predicting how much to stock, and setting product prices is about pricing strategy. Those areas deal with different parts of the supply chain.