APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 139

A major retailer has informed a product manufacturer that they must take back all of their dunnage. The manufacturer's major decision in implementing reverse logistics will most likely be to:

Answer options

• A. manage the process internally or outsource to a third party.
• B. take back the dunnage or tell the retailer to destroy it all.
• C. reduce packaging materials to save money but risk more damage.
• D. increase the selling price to the retailer to cover increased costs.

Correct answer: A

Explanation

The correct answer is A because the manufacturer needs to decide whether to manage the reverse logistics process themselves or hire a third-party service. Options B, C, and D do not directly address the operational decision-making involved in reverse logistics management.