Business Finance
Inventory Control Models in Amazon Presentation

Question Description

I’m working on a Business question and need guidance to help me study.

Topic: The Inventory Control Models in Amazon

Requirement:

You must address all following in the research paper:

  • The importance of inventory control and ABC analysis.
  • Use the economic order quantity (EOQ) to determine how much to order.
  • Compute the reorder point (ROP) in determining when to order more inventory.
  • Handle inventory problems that allow quantity discounts or non-instantaneous receipt.
  • The use of safety stock.
  • Describe the use of material requirements planning in solving dependent-demand inventory problems.
  • Discuss just-in-time inventory concepts to reduce inventory levels and costs.
  • Discuss enterprise resource planning systems.

Outline for the Paper:

  • Paper must be 12 pages, double spaced.
  • Abstract
  • Introduction
  • Abbreviated literature Review
  • (sources less than Five years old)
  • Body (with sub-sections – with appropriate titles)
  • Conclusion
  • Recommendations
  • Areas for Further Research
  • Bibliography

Outline - PowerPoint Presentation

  • No more than 5 slides double spaced.
  • Title Page (Presentation)
  • Introduction (Outline)
  • Key Topics
  • Your Thoughts & Recommendations
  • Areas for Additional Research
  • Bibliography

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

Attached.

Running head: AMAZON INVENTORY MODELS

Inventory Models at Amazon
Student’s Name
Institutional Affiliation

1

AMAZON INVENTORY MODELS

2
Abstract

Amazon is an online retail business that provides electronic commerce products,
manufactures electronic book readers, and offers Web services that have become of iconic
example in the electric commerce industry. Using a literature review, the paper will be exploring
inventory models at Amazon. Being a multi-level e-commerce company, Amazon operates seven
total number of websites that support its business operations globally and offers over 20 million
items to its customers. Besides, the company uses various inventory models that include
economic order quantity (EOQ) inventory model, joint economic lot-sizing model, and singleperiod inventory model. All these models are used to ensure that customer service levels are kept
high, protect the company from fluctuations in demand, and ensure that the supply chain runs
smoothly. These inventory models ensure that Amazon remains a smooth flow of raw-materials
and aids in continuing production operations. It checks and maintains the right stock and reduces
the risk of loss.
The paper finds out that Amazon uses safety stock, just-in-time inventory concept,
enterprise resource planning, economic order quantity, and reorder to ensure that customer
service is high, also to ensure that they do not run out of cycle stock. The company will still be in
a position to prepare for more orders online, even after an unexpected change in supply and
demand. Besides, safety stock gives. In light of this, this paper is using a literature review and
internet research to attempt to bring into understanding the inventory models used by Amazon.

AMAZON INVENTORY MODELS

3
Introduction

Amazon is an online retail business that provides electronic commerce products,
manufactures electronic book readers, and offers Web services that have become of iconic
example in the electric commerce industry. The headquarters of the company is in Seattle,
Washington, D.C. Amazon is a large e-commerce internet-based company that deals with selling
music, movies, and books either through the internet or middleman to other retailers. Amazon's
web services are highly dependent on cloud computing and renting data storage on the internet.
The company commands a considerable internet presence since 2012, the year it was
controlling one percent of all the internet data in North America, traveling in and out of the
company. Mountz et al. (2019) affirm that Amazon sells products such as books, music and
movie DVDs, and electronic products through the internet to over 60 countries in the world. The
company uses the Amazon-Buyer sales approach to sell its products. Being a multi-level ecommerce company, Amazon operates seven total number of websites that support its business
operations globally and offers over 20 million items to its customers. The diagram below shows
the Amazon.com multi-tier inventory model courtesy of Amazon.com's official website.
Amazon uses sophisticated inventory management strategies to ensure that sellers and
customers are fully satisfied. The company uses Amazon inventory software to avoid the hustle
of manually tracking inventory documents or spreadsheets. The success of the company in the ecommerce industry is not only because it has been able to change millions of consumer
expectations, but also because the company has been capable of managing its inventory
efficiently. In the management of its inventory, Amazon uses strategies such as Reworking
warehouse, distribution, and fulfillment of processes, distributing warehouses to bring products
close to customers and give customer's power in the supply chain.

AMAZON INVENTORY MODELS

4

LITERATURE REVIEW
Economic Order Quantity (EOQ) Inventory Model
Mountz et al. (2019) assert that the economic order quantity (EOQ) inventory model is
used as a tool for determining the optimal order of products and services to be stored in the
warehouse to minimize the sum of carrying cost and ordering costs. Amazon uses the model as
an inventory management model because it sets restrictive regulations such as no shortage in
inventory goods, lead time for orders to be constant, and no short of supply. Besides, Amazon is
also using the economic production quantity model intending to reduce and minimize the total
inventory costs. According to Mountz et al. (2019), this model helps Amazon to develop a
platform of balancing inventory holding cost and average ordering costs in the online internet.
Besides, the classical economic production quantity model is widely used by the company
because the model conforms closely to real-world situations. In recent times, the use of the

AMAZON INVENTORY MODELS

5

model has enabled Amazon to attract considerable attention to the public because of its ability to
reduce the consumption of natural resources in an environment where the price of raw materials
has significantly increased.
Joint Economic Lot-Sizing Model
Ivanov, Tsipoulanidis & Schönberger (2019) assert that Amazon's joint economic lotsizing model helps it address issues of inventory coordination with its buyers and...

UCLA

Anonymous
Thanks for the help.

Anonymous
Outstanding. Studypool always delivers quality work.

Anonymous
Tutor was very helpful and took the time to explain concepts to me. Very responsive, managed to get replies within the hour.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
Similar Questions
Related Tags