CHAPTER 10 – MANAGING PRODUCT RETURN AND REVERSE SUPPLY CHAINS

Question 1

A well-managed reverse supply chain can ___ and ____

Answer 1

increase customer loyalty and grow sales revenues

Question 2

some of the costs involved in this “free” return transaction:

Answer 2

-Shipping to customer
-Return shipping from customer
-Inventory carrying costs from the time the product is shipped until it’s restocked
-Receiving processing
-Performing quality inspection
-Processing customer refunds
-Repackaging
-Restocking

Question 3

Many businesses insist on giving their customers permission to return a product by issuing a ____

Answer 3

return material authorization (RMA)

Question 4

an agreement from the company that it will accept the product when it’s returned.

Answer 4

return material authorization (RMA)

Question 5

The ___ makes it easier for the company to process returns when they are received.

Answer 5

RMA number

Question 6

A store that has a ___ encourages customers to buy more and makes them loyal to a brand

Answer 6

liberal refund policy

Question 7

A ___ has the opposite effect, making customers reluctant to commit to a purchase.

Answer 7

strict refund policy

Question 8

– occurs when a customer isn’t sure how much she’ll need, so she buys a lot and returns whatever was left over.

Answer 8

Overordering

Question 9

Return Scenarios:
(3)

Answer 9

Changed mind
Gift return
Excess return

Question 10

Before accepting the return of an used product, you need to consider issues that can occur including:
(3)

Answer 10

Minor wear and tear
Damage or tampering
Substitution

Question 11

scratches or other light damage on the packaging or the product

Answer 11

Minor wear and tear

Question 12

Some products lose all their value after their packaging is opened. Medicine is a great example. __ or__ can occur with any product, including electronics and computers.

Answer 12

Damage or tampering

Question 13

a customer returns the wrong product, either by accident or on purpose

Answer 13

Substitution

Question 14

Retailers sometimes allow customers to return used products as a way to ___

Answer 14

build brand loyalty

Question 15

In most cases, used products can’t easily be sold, so these returns are commonly:

Answer 15

-resold at a deep discount, without warranty
-auctioned off as salvage
-thrown away.

Question 16

Supply chains begin with ___and end with ____ — ideally, in a way that doesn’t harm the planet.

Answer 16

raw materials from the Earth ,used products being returned to the Earth

Question 17

– supply chains that circle back on themselves
– you recycle all the components when the product reaches the end of its usable life.

Answer 17

Closed-loop supply chains

Question 18

– a part is designed in such a way that it can be rebuilt and reused over and over.

Answer 18

Remanufacturing

Question 19

used part that’s being returned for remanufacturing

Answer 19

core

Question 20

Customers may send back products that they never bought from you in the first place, or you may not be able to identify what the product is, where it came from, or where it belongs.

Answer 20

Handling Unauthorized Returns and Fraudulent Products

Question 21

needs to authenticate the products coming back from your customers to make sure that the products are what they’re supposed to be

Answer 21

Refunds-processing department

Question 22

– Unsuspecting customers sometimes end up purchasing counterfeit products by accident, especially online, and then try to return them to a local store when the products don’t work properly

Answer 22

Fraudulent returns

Question 23

– a major problem for some products; it costs your company money because fake products take revenue away, and the ____ goods are often low-quality, which damages your brand.

Answer 23

counterfeiting, counterfeit

Question 24

often make sense for products that have a long life. They can be great ways to make more money and to make customers’ lives simpler.

Answer 24

Trade-Ins

Question 25

reduce the purchase price of your product, so they can increase your sales

Answer 25

Trade-in credits