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.
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Product Characteristic
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Functional Product
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Innovative Product
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Choose From
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Lifecycle length
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Long/Short
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Contribution margin
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High/Low
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Product variety
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Lot/Little
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Forecast errors
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Large/Small
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Stockout rates
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High/Low
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Forced end-of-season markdowns
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Frequent/Rare
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Order lead time
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Long/Short
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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?