As more firms entertain the option of developing reverse logistics supply chains, explain the financial implications they should consider.

Chapter 15, End of Chapter, Discussion Questions , Exercise 3
Page 614
Here is a tip:
Reverse logistic is when the product reaches seller or manufacturer from customers.

Explanation
Financial consequences of reverse logistics that a firm must consider are as follows:

Expensive process: The reverse logistic supply chains are comparatively costlier to handle and acquire than forward flow.
Affect sale of new products: If a manufacturing firm starts remanufacturing, the remanufactured products may affect the sales of the latest products.
Advantage to the competitors: The competitors may remanufacture the products and directly sale them in the market, while the firm is involved in the reversal of supply chain.
Loss of opportunity cost: While the firm is availing the reverse supply chain, they might lose the opportunity cost to manufacture new products or remanufacture the products.
Verified Answer
Financial impacts that a firm must consider:

Expensive process
Affect sale of new products
Advantage to the competitors
Loss of opportunity cost
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