Consider Amazon’s distribution network. How is Amazon using its distribution network to be both responsive and cost-effective? Evaluate Amazon’s distribution network on the following measures that determine the value provided to the customer. Response time Product variety Product availability Customer experience Time to market Order visibility Returnability Do you think Amazon currently has the number of facilities to minimize its logistics cost (see Figure 4-5), or it has decided to go beyond that minimum point to further improve its responsiveness? Do you think this decision is aligned with Amazon strategic position within the efficiency-responsiveness spectrum.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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  1. Consider Amazon’s distribution network.
    1. How is Amazon using its distribution network to be both responsive and cost-effective?
    1. Evaluate Amazon’s distribution network on the following measures that determine the value provided to the customer.
      1. Response time
      2. Product variety
      3. Product availability
      4. Customer experience
      5. Time to market
      6. Order visibility
      7. Returnability
    2. Do you think Amazon currently has the number of facilities to minimize its logistics cost (see Figure 4-5), or it has decided to go beyond that minimum point to further improve its responsiveness? Do you think this decision is aligned with Amazon strategic position within the efficiency-responsiveness spectrum.
    3. Do you usually get your orders from Amazon in single or multiple deliveries? What does it tell you about the Amazon’s distribution network?
    4. Investigate an Amazon pick-up/return location inside Whole Foods or Kohls. How has Amazon significantly reduced processing costs (e.g., what IT technology and infrastructure they are using)?
    5. How do you usually shop for a pair of show? Justify your response based on the following customer service elements: response time, product variety, availability, customer experience, time to market, visibility, and returnability.
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