APICS Certified Supply Chain Professional (CSCP) — Question 382
Which or the following disposition decisions in a reverse logistics operation generally results in the highest recuperated profit for a company?
Answer options
- A. Disassembly
- B. Recycling
- C. Remanufacturing
- D. Scrapping for cash
Correct answer: C
Explanation
Remanufacturing is the correct answer because it restores used products to like-new condition, allowing companies to sell them at a higher price. In contrast, disassembly, recycling, and scrapping for cash generally yield lower profit margins compared to remanufacturing, as they often involve more costs or lower resale values.