Question

In a paragraph or two discuss the marketing and supply chain benefits and costs related to product complexity.

Answer 1

Product complexity refers to the number of product design variations that the firm decide to offer and correspondinglysupport. From a supply chain perspective, it is generally known that increased complexity results in higher costs. There are some key types of cost of product complexity in supply chain, and an increase in product complexity is causing the excessive increase in frequency or amount of these costs resulting in disruption cost. The major rationale is that increased product variations result in more inventory and fewer economies of scale, and requires more management attention.