CPIM Practice Exam

Which logistics function involves planning and controlling the movement of inventories?

1. Traffic management

2. Transportation

3. Distribution requirements planning

4. Inventory control

The correct answer is: Transportation

The function that primarily involves planning and controlling the movement of inventories is transportation. This process encompasses the entire logistics framework needed to ensure that goods and materials are moved efficiently and effectively from their source to the destination where they will be stored or used. Transportation focuses on the logistics of getting products from suppliers to warehouses, distribution centers, or directly to retailers and customers. This includes selecting the appropriate mode of transport (such as trucking, shipping, or rail), optimizing routes, and managing shipping schedules, which all directly influence inventory levels and turnover rates. By managing these aspects, transportation helps maintain a smooth flow of goods through the supply chain, ensuring that inventory is available when and where it is needed. Other functions, while important in the overall logistics framework, do not specifically focus on the movement aspect in the same way that transportation does. For instance, traffic management deals with the coordination and efficiency of transport vehicles but does not cover the broader logistical planning of inventories. Distribution requirements planning focuses on determining the quantity of items needed at various locations but is more about scheduling than movement. Inventory control pertains to managing stock levels and ensuring that there are appropriate amounts of inventory to meet demand, rather than the transport of that inventory itself.