The factory method design pattern is a creational pattern that provides an interface for creating objects, allowing subclasses to specify the type of objects created while decoupling the code from specific implementations. It helps manage complexity in applications, particularly when adding new features, such as supporting multiple types of transportation in a logistics application. By overriding the factory method in subclasses, different product types can be returned while maintaining a common interface, simplifying client code interaction with the products.
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