Amazon.com sells books, music, electronics, software, toys, and home improvement products online. In which product category does e-business offer the greatest advantage compared with a retail store chain? In which product category does e-business offer the smallest advantage (or a potential cost disadvantage) compared with a retail store chain? Why?
Answer to relevant QuestionsWhy should an e-business such as Amazon.com build more warehouses as its sales volume grows? In the future, do you see the value added by distributors decreasing, increasing, or staying about the same? Amazon.com has built new warehouses as it has grown. How does this change affect various cost and response times in the Amazon.com supply chain? Summarize the basic steps in the decision tree analysis methodology. Why should a manager be suspicious if a forecaster claims to forecast historical demand without any forecast error?
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