CPIM Practice Exam

What is the role of the 'traffic' department in logistics?

1. Managing supplier contracts

2. Arranging economic classification and method of shipment

3. Controlling inventory levels

4. Coordinating warehouse operations

The correct answer is: Arranging economic classification and method of shipment

The role of the 'traffic' department in logistics primarily focuses on arranging the economic classification of goods and determining the most efficient method of shipment. This includes optimizing transportation routes, selecting carriers, and ensuring that shipments are cost-effective while meeting delivery timelines. The traffic department acts as a bridge between suppliers and carriers, ensuring that products are transported in compliance with regulations and in a manner that minimizes costs and maximizes efficiency. By classifying goods economically, the traffic department can better allocate resources and select appropriate shipping methods based on factors such as weight, size, and destination. This function is essential for ensuring that logistics operations run smoothly and that the organization can effectively manage its supply chain. While managing supplier contracts, controlling inventory levels, and coordinating warehouse operations are also crucial aspects of logistics, they fall under different responsibilities that do not directly pertain to the specific functions of traffic management.