Order Management and Logistics: Inventory, Warehousing, Last-Mile Delivery, Returns (Reverse Logistics) Basics Questions

Question 1

Define OMS (Order Management System).

Accepted Answer

**OMS** is a system that manages the order lifecycle from order placement to **delivery**, including cancellations, returns and refunds (concept).

Question 2

What is last-mile delivery?

Accepted Answer

**Last-mile delivery** is the final delivery step from a local hub/warehouse to the customer’s address (concept).

Question 3

Reverse logistics means returning goods from customer back to seller/warehouse. (True/False)

Accepted Answer

True. **Reverse logistics** manages return pickup, QC and refund/replacement processing (concept).

Question 4

What is safety stock?

Accepted Answer

**Safety stock** is extra inventory kept to protect against uncertainty in demand or lead time and avoid stock-outs (concept).

Question 5

SKU stands for Stock Keeping Unit. (True/False)

Accepted Answer

True. **SKU** is a unique identifier for a product/variant used for inventory control (concept).

Question 6

RTO in logistics means Return-to-Origin due to failed delivery. (True/False)

Accepted Answer

True. **RTO (Return-to-Origin)** happens when a shipment returns due to failed delivery attempts or address issues (concept).

Question 7

Write the end-to-end order fulfilment steps (any six) and draw a simple flowchart.

Accepted Answer

Any six steps (concept):
- order placement
- payment confirmation/COD validation
- **inventory allocation/reservation** (OMS)
- picking
- packing and labeling
- handover to courier
- hub sorting/line haul
- **last-mile delivery**
- delivery confirmation

Flowchart:

```text
Order -> OMS Allocate -> Pick/Pack -> Ship -> Hub -> Last-mile -> Delivered
```

Question 8

Explain pick-pack-ship in warehousing (any three points) using a table.

Accepted Answer

Pick-pack-ship (concept):

| Step | Meaning (concept) |
|---|---|
| **Pick** | selecting ordered items from storage locations |
| **Pack** | packaging + invoice/label to protect item |
| **Ship** | handover to courier + tracking updates |

Any three points with correct meaning are sufficient.

Question 9

List key delivery performance metrics (any three) and state what each measures (use a table).

Accepted Answer

Metrics (concept):

| Metric | What it measures |
|---|---|
| **On-time delivery %** | delivered within promised date |
| First attempt success | delivered on first attempt |
| **RTO rate** | shipments returned due to failed delivery |
| Delivery lead time | time from order to delivery |

Write any three.

Question 10

Explain reverse logistics and mention any three activities (use a table).

Accepted Answer

**Reverse logistics** is moving goods back from customer to hub/warehouse for refund/replacement/restocking (concept).

| Activity | What happens (concept) |
|---|---|
| pickup | collect returned item from customer |
| QC/inspection | check condition at hub |
| refund/replacement | process customer resolution |
| restocking/disposal | restock, refurbish, or scrap |

Write any three activities.

Question 11

List common reasons for returns and how to reduce them (any three) using a table.

Accepted Answer

Returns and reduction (concept):

| Return reason | How to reduce (concept) |
|---|---|
| wrong size/fit | size chart + reviews + better attributes |
| product mismatch | accurate photos/descriptions |
| damage in transit | stronger packaging + handling SOP |
| late delivery | better forecasting + reliable courier |

Write any three rows.

Question 12

Explain stock-out and lead time (any three points) and show how OMS helps reduce stock-outs (use a table).

Accepted Answer

Meaning (concept):
- **Stock-out**: item becomes unavailable when customer wants to buy.
- **Lead time**: time taken to replenish stock from supplier.

How OMS helps reduce stock-outs (table):

| OMS action | Benefit (concept) |
|---|---|
| **Inventory reservation** | avoids double-selling the same unit |
| real-time stock update | accurate availability shown to customers |
| reorder alerts/rules (overview) | triggers replenishment planning |

Write any three correct points.

Question 13

Explain inventory and warehousing in e-commerce and show how they affect delivery and costs (exam-style) with a table.

Accepted Answer

### Inventory and warehousing (meaning)
- **Inventory** is stock kept to meet customer demand.
- **Warehousing/fulfilment** stores inventory and performs **pick-pack-ship** operations (concept).

### Impact on delivery and cost (table)

| Decision | Positive impact (concept) | Cost/Risk (concept) |
|---|---|---|
| Keep stock closer (regional hubs) | faster delivery | higher storage cost |
| Maintain **safety stock** | fewer stock-outs | holding cost/obsolescence |
| Better warehouse processes | fewer picking errors | process/setup cost |

Conclusion: Balance service level and cost using forecasting and efficient fulfilment (concept).

Question 14

Discuss last-mile delivery challenges and suggest improvements (exam-style) with a table.

Accepted Answer

### Challenges
**Last-mile delivery** is expensive and complex due to many addresses, traffic, failed attempts and COD handling (concept).

| Challenge | Improvement (concept) |
|---|---|
| address errors | pincode/address validation + map pin |
| failed attempt | delivery slots + OTP at delivery |
| high cost per drop | route optimization + local hubs |
| COD/RTO | confirmation calls + risk rules |

Conclusion: Improving first-attempt success and reliability reduces cost and increases customer trust (concept).

Question 15

Explain returns management and reverse logistics process (exam-style) with a flowchart and table.

Accepted Answer

### Returns management process

```text
Return Request -> Pickup -> QC at Hub -> Decision (Restock/Refurbish/Scrap) -> Refund/Replacement
```

### Key controls (table)

| Control | Purpose (concept) |
|---|---|
| clear return policy | sets expectations and reduces disputes |
| QC/inspection | prevents resale of damaged items |
| packaging standards | reduces transit damage |
| catalogue accuracy | reduces mismatch returns |

Conclusion: Efficient **reverse logistics** reduces cost and improves customer experience (concept).

Order Management and Logistics: Inventory, Warehousing, Last-Mile Delivery, Returns (Reverse Logistics) Basics

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