APICS Certified Supply Chain Professional (CSCP) — Question 280

As opposed to functional products, innovative products have which of the following characteristics?

Answer options

• A. Lead times are longer.
• B. Product life cycle is longer.
• C. Profit margins are lower.
• D. Demand uncertainty is higher.

Correct answer: D

Explanation

The correct answer is D because innovative products typically face higher demand uncertainty due to their novel nature, which makes it difficult to predict customer preferences. In contrast, options A, B, and C are characteristics more aligned with functional products, which generally have shorter lead times, longer life cycles, and higher profit margins.