A key challenge in managing the supply chain for an innovative product is that:

Managing the supply chain for an innovative product presents the challenge of volatile product demand. Here's why:

Market Uncertainty: Innovative products often face uncertain demand as market acceptance is unpredictable.

Rapid Changes: The market for innovative products can change rapidly due to technological advancements, shifts in consumer preferences, and competitive actions.

Demand Forecasting: Accurately forecasting demand for innovative products is difficult, leading to potential mismatches between supply and demand.

Inventory Management: Volatile demand requires flexible inventory management strategies to avoid stockouts or excess inventory, both of which can be costly.

References:

Fisher, M. L. (1997). What is the right supply chain for your product? Harvard Business Review.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain. McGraw-Hill.