The document discusses different types of supply chains and how to match them to product demand characteristics. There are two main types - functional supply chains for products with predictable demand, and innovative supply chains for products with unpredictable demand. The document provides examples of characteristics and strategies for each type, such as inventory levels, lead times, and initiatives to make the supply chain efficient or responsive. It also discusses what to do when there is a mismatch between supply chain type and product demand.