Question

Products with short life cycles and typically high-profit margins.

Short answer

Innovative products

Step-by-step solution

Innovative products

Innovative products refer to those products which consist of new ideas, technologies, and redesigned structures, that are somehow different from their original ideas. It could be referred to as a way to solve the problem faced by a large number of customers.

Innovative products are products with short life cycles and typically high-profit margins

Innovative items are products that are new to the market and provide something distinctive. These products can have a higher profit, but they also have irregular demand patterns and require a supply chain that is significantly different from that of basic products.

1. Innovative products have volatile and unpredictable demand.
2. Innovative products have a shorter life cycle,fromthreemonths tooneyear.
3. Innovative products have high variants,often millions of variants per category.
4. Innovative products have a 10 % to 40% stock out rate.
5. Innovative products have high-profit margins as compared to functional products.
6. Innovative products have a lead time of one day to two weeks.
7. Innovative products include personal computers and fashion apparel.