Certified Production & Operations Manager (POM) Practice Exam

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What type of supply chain manages forward and reverse product flows throughout the product's life cycle?

  1. Open-loop supply chain

  2. Closed-loop supply chain

  3. Linear supply chain

  4. Circular supply chain

The correct answer is: Closed-loop supply chain

The closed-loop supply chain is designed to manage both forward and reverse flows of products throughout their life cycle. This type of supply chain encompasses the complete journey of a product, starting from raw material sourcing, manufacturing, distribution, and retailing, all the way to the end of the product’s life when it is returned or recycled. In a closed-loop supply chain, not only is the typical forward movement of products taken into account, but also how those products can be retrieved after their useful life ends. This includes processes such as returns, recycling, refurbishing, and remanufacturing, which help to minimize waste and promote sustainability. By effectively integrating these reverse flows, closed-loop supply chains can optimize resource recovery and create additional value from used products, differentiating them from other supply chain types that may focus solely on forward logistics without addressing product return and recovery.

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