Question : Case Study:
ABC Clothing partners with its suppliers to ensure the return and management of defective or unsold products. What aspect of distribution is being highlighted?
Option 1: Inventory Management
Option 2: Channel Conflict
Option 3: Logistics Optimization
Option 4: Reverse Logistics
Correct Answer: Reverse Logistics
Solution : The correct answer is (d) Reverse Logistics.
Reverse logistics involves the processes and activities associated with managing the flow of products from the point of consumption (or the point of sale) back to the point of origin to recover value or proper disposal. In this case, ABC Clothing is addressing the management of defective or unsold products through collaboration with its suppliers, demonstrating a focus on reverse logistics to handle returns and product disposition. This process ensures that defective or unsold products are appropriately managed, either by returning them to suppliers, refurbishing or disposing of them in an environmentally friendly manner.