Certified Supply Chain Professional (CSCP) Practice Exam

What does offsetting refer to in supply chain management?

1. Adjusting order quantities based on sales

2. Counting backward from the due date to accommodate lead time

3. Modifying delivery schedules

4. Creating backup plans for supply shortages

The correct answer is: Counting backward from the due date to accommodate lead time

Offsetting in supply chain management is a critical concept that pertains to managing timelines effectively. Specifically, it involves counting backward from the due date of a product or service to consider the necessary lead time. This approach ensures that all activities leading to the due date align properly, allowing for adequate preparation and resource allocation. By adopting an offsetting strategy, supply chain professionals can establish more realistic timelines for procurement, production, and distribution processes. It allows for the identification of potential delays and helps in planning the timely completion of tasks while maintaining the overall schedule. This proactive approach minimizes the risk of disruptions and enhances efficiency in the supply chain. In contrast, the other choices focus on different aspects of supply chain management. Adjusting order quantities relates to inventory management rather than the timing of deliveries, modifying delivery schedules pertains to the logistics of transportation and may not directly involve counting backward, and creating backup plans for supply shortages is more about risk management than timeline planning. Hence, offsetting specifically emphasizes the importance of timing by calculating backward from the desired completion date, ensuring that all operational elements are synchronized effectively.