Question: Amazon applies Lean accounting principles to its supply chain. Requirements: Calculate the Total Cost of Ownership (TCO) for Amazon's fulfillment centers, where initial costs were

  • Amazon applies Lean accounting principles to its supply chain.
  • Requirements:
    • Calculate the Total Cost of Ownership (TCO) for Amazon's fulfillment centers, where initial costs were $50,000,000, annual maintenance costs are $2,000,000, and the lifespan is projected to be 20 years.
    • Recommend strategies to minimize TCO.
    • Explain the importance of managing TCO in Lean supply chain practices at Amazon.
    • Discuss how TCO impacts Amazon's balance sheet.

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