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Question
a. Give two examples each of a functional product and an innovative product.
b. Characterize functional/innovative products by choosing the appropriate adjective from the last column.
Product Characteristic
Functional Product
Innovative Product
Choose From
Lifecycle length
Long/Short
Contribution margin
High/Low
Product variety
Lot/Little
Forecast errors
Large/Small
Stockout rates
Forced end-of-season markdowns
Frequent/Rare
Order lead time
c. It is claimed that a supply chain has two functions: a physical function, and a market mediation function. Explain what these terms mean.
d. Supply chains are generally of two types: physically efficient supply chains, and market responsive supply chains. What type of supply chain would be suitable for a functional product? Why?
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