Discuss the Importance and Magnitude of Reverse Flows, and Name

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The Answer is Reverse flows have been a part of logistics and supply chains for many years. Consumer goods companies and transportation companies have always dealt with damaged products that often required returns at some level. Transportation companies dealt with customers who would not accept damaged products, and they accepted liability for the value of the damaged products.
Many additional traditional examples of reuse, recycling, and so forth could be offered to make the case that reverse flows have been a part of the business operations of some companies for many years. The recent increased focus on reverse flows is attributable to the significant increase in the need for reverse flows.
According to some experts, a large percentage of what is sold may be returned. No one has an exact measure, and the percentage will vary among industries, but it is estimated that returns can range from a low of about 3 percent to a staggering 50 percent in some sectors. As the preceding data indicate, returns are a significant issue in some industries, and this trend appears to be increasing.
The following are eight categories of reverse flows:
1. Products that have failed or are unwanted, damaged, or defective but that can be repaired or remanufactured and resold
2. Products that are old, obsolete, or near the end of their shelf life but still have some value for salvage or resale
3. Products that are unsold from retailers, usually referred to as overstocks that have resale value
4. Products being recalled due to a safety or quality defect that may be repaired or salvaged
5. Products needing "pull and replace" repair before being put back in service
6. Products that can be recycled such as pallets, containers, and computer inkjet cartridges
7. Products or parts that can be remanufactured and resold
8. Scrap metal that can be recovered and used as a raw material for further manufacturing (Pages 625-626)

Discuss the Importance and Magnitude of Reverse Flows, and Name

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