DEPARTMENT OF MANANGEMENT SCIENCES HAZARA UNIVESRITY

MANSEHRA

Assignment 02

Subject : Supply Chain Management

Submitted to: Dr. Sajjad Afridi

Submitted by: Syed Noman Ashraf

Topic

Amazon: Online Sales

Why is Amazon building more warehouses as it grows? How many
warehouses should it have and where should they be located?

As it developed, the organization included distribution centers, permitting it to respond all the
more rapidly to customer orders,

 Obviously when the no of stockrooms increment the reaction time decline, and when the
no of distribution centers decline the reaction time increment. So by expanding the no of
distribution centers and find those close to the client will improve reaction time.

 Amazon has around 50 stockrooms, 20 in U.S and rest 30 in Canada, France, Germany,
Italy, United Kingdom, China, and Japan.

What advantages does selling books via the Internet provide over a
traditional bookstore? Are there any disadvantages to selling via the
Internet?

 Now a day’s world has become global village that is the reason there is a need to begin
business by means of web based business as we probably am aware e-business influences
client care components, for example, item assortment, accessibility, client experience,
time to market, perceivability, and return-capacity.

 Amazon offers an a lot bigger determination of books than a run of the mill book shop.
Offering a similar determination at a retail location would require a gigantic area with
correspondingly enormous measure of stock.
Disadvantages:
• Response time

• Transportation cost

Should Amazon stock every product it sells

No it should stock those products which are in higher demand.

What advantage can bricks-and-mortar players derive from setting up
an online channel?
How should they use the two channels to gain maximum advantage?

The performance of traditional bookstore supply chain can be improved significantly by

combining the strength of the retail and online channels. It is important to realize that the
benefits of aggregation are most significant for low- demand books whose demand is hard to
forecast.

 The book supply chains should be structured so that retail outlets carry many copies of
best sellers for customer purchase and one copy of low demand books to encourage
customers to browse and make impulse purchase. Terminals or internet kiosks should be
provided so that customers wanting to order low demand books that the bookstore can
offer.
 This approach allows the supply chain to reduce inventories by aggregating low demand
books sold online while keeping transportation costs low for best sellers sold at retail
store.