A closed-loop supply chain is different from a traditional supply chain because it:

Question

BlackTom AI · Accepted Answer

The question asks what distinguishes a closed-loop supply chain from a traditional one. 
Option 1: 'Reduces labor costs exclusively' – While cost considerations are important in any supply chain, a closed-loop approach is not defined by reducing labor costs alone. It emphasizes incorporating returns, recyclability, and lifecycle considerations rather than just cost cutting. This makes the statement incomplete or misleading about the core distinction. 
Option 2: 'Ignores inventory placement' – Inventory placement can be relevant in many supply chains for efficiency, but ignoring it would be inaccurate. Closed-loop supply chains still require thoughtful inventory management for both forward and reverse flows, returns processing, and remanufacturing or recycling. Therefore this option mischaracterizes the concept. 
Option 3: 'Integrates forward and reverse logistics, focusing on the product lifecycle' – This captures the essence of a closed-loop system: it explicitly combines traditional forward logistics (production, distribution to customers) with reverse logistics (returns, refurbishing, recycling), and it centers on the entire product lifecycle rather than a single directional flow. This is the defining feature that sets closed-loop apart from traditional chains. 
Option 4: 'Only delivers goods to customers' – This describes a basic, forward-only view of logistics and ignores the reverse flow and lifecycle considerations central to closed-loop systems. It is inaccurate as a differentiator. 
In summary, options 1 and 2 misstate the scope or emphasis of closed-loop systems, option 4 reduces the concept to a simple delivery function, while option 3 correctly identifies the integration of forward and reverse logistics and the lifecycle focus that characterizes a closed-loop supply chain.

MGS3100W05 25 Fall OM Final - Requires Respondus LockDown Browser

A closed-loop supply chain is different from a traditional supply chain because it:

View Explanation

Log in for full answers

Similar Questions

The term "supply webs" refers to the multiple steps taken to move a product or service from the most distant supplier to the customer.

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements is known as

An important feature of supply chain management is its application of________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management.

Which statement best describes how a supply chain differs from a marketing channel?

A large retail chain is implementing a new supply chain management system to improve its inventory management. The company wants to reduce the bullwhip effect, which has been causing stockouts and excess inventory. Which of the following strategies would be most effective in achieving this goal?

The bullwhip effect is reduced by:

Service/product proliferation simplifies supply chain operations by reducing complexity.

More Practical Tools for International Students

Exam Browser Assistant

Stylized Writing Assistant

Plagiarism Checker Assistant

Citation Assistant

In-Class Translation Assistant

Class Notes Assistant

Quiz Search Assistant

Past Exam Questions by School

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler

MGS*3100*W05 25 Fall OM Final - Requires Respondus LockDown Browser

A closed-loop supply chain is different from a traditional supply chain because it:

View Explanation

Log in for full answers

Similar Questions

The term "supply webs" refers to the multiple steps taken to move a product or service from the most distant supplier to the customer.

The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements is known as

An important feature of supply chain management is its application of________ that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management.

Which statement best describes how a supply chain differs from a marketing channel?

A large retail chain is implementing a new supply chain management system to improve its inventory management. The company wants to reduce the bullwhip effect, which has been causing stockouts and excess inventory. Which of the following strategies would be most effective in achieving this goal?

The bullwhip effect is reduced by:

Service/product proliferation simplifies supply chain operations by reducing complexity.

More Practical Tools for International Students

Exam Browser Assistant

Stylized Writing Assistant

Plagiarism Checker Assistant

Citation Assistant

In-Class Translation Assistant

Class Notes Assistant

Quiz Search Assistant

Past Exam Questions by School

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler

MGS3100W05 25 Fall OM Final - Requires Respondus LockDown Browser