Why do functional items not have great profit margins? Why do innovative items have short life cycle? Explain.

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Begin by reading What is the Right Supply Chain for your Product (PDF found in this week’s Module)

Why do functional items not have great profit margins? Why do innovative items have short life cycle? Explain.
How and why do supply chain functions, physical and market mediation, and function costs differ with innovative and functional products? Explain.
How does the demand for innovative and functional products differ? Explain.
Customer service is decreasing, and inventories of unsold products is growing. How could this be?
Investing in enhancing supply chain responsiveness will pay off. – Do you agree with the author’s point of view? Why? Explain.
What insights can be drawn from Campbell’s continuous replenishment program? Explain them.
What are the three strategies to manage demand uncertainty? How did Sports Obermeyer employ these strategies? Explain.
Explain the relationship between mass customization and innovative products.

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