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warranty costs are significant as they involve repairing, refurbishing, or replacing returned products under warranty. Restocking stocks costs associated with processing returned items, which may include inspection, repackaging, and returning the items to inventory if they are resalable.
The costs that are likely to be incurred in reverse logistics include warranty and restocking costs. Reverse logistics is the process of managing the return and disposal of products, including those that are defective or no longer needed by customers. In this context, warranty costs refer to the cost of repairing or replacing products that are returned due to defects or quality issues, while restocking costs refer to the cost of receiving, inspecting, and re-stocking returned products.
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