Why the function of traffic section is most important

Operations Management


Why the function of traffic section is most important

case study (20 Marks)

The stock control maintains a set of stock control cards properly classified and codified for various items held in stock. Minimum and maximum levels are fixed on these cards to effect timely recoupment as well as to control investment. Stock department base don requirement of market by various stores raises the purchase requisition which show the quantity to be ordered and delivery requirements. If the materials do not arrive in time, the stock control sends a warning to the purchase section so that purchase department could take a suitable action to expedite supplies. The stock control also contributes to stock reduction through ABC/VED/FSN analysis and consumption details etc. for compiling purchase budgets. Traffic or C and F. The function of the traffic section is to clear goods coming by rail, sea, air etc as well as to dispatch finished goods. The document relating to incoming goods are sent to them by the purchase section or accounts department or directly by the supplies. On receipt of the documents the traffic

section will contact the railway authorities, streamer agent, or airline office, pay any charges due and take delivery of the goods

Answer the following question.


Q1. What is stock control? Discuss one of the methods of stock control in detail.


Q2. Why the function of traffic section is most important? Explain.

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Why the function of traffic section is most important


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