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    Consider Amazon. Initially when the company was established the orders were taken by Amazon online and were filled by Ingram Book and shipped to consumers. After several years around 6 DCs were established in USA.

    What are the benefits in term of inventory and Amazon use of DCs?
    Why did they do this?
    How could they use the ABC inventory approach?

    533 words, three references

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    https://brainmass.com/business/inventory-management/strategic-supply-chain-management-350611

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    strategic supply chain management

    consider Amazon. Initally when the conmpany was established the orders were taken by Amazon online and were filled by Ingram Book and shipped to consumers. After several years around 6 DCs were established in USA.

    What are the benefits in term of inventory and Amazon use of DCs?
    There are several benefits in terms of inventory that Amazon gains from the 6 new distribution centers. These centers can handle three times the volume of what Amazon could handle four years ago. Further, the cost of operating them has been reduced by half. These are large distribution centers and have helped Amazon reduced the number of distribution mistakes substantially (1). These distribution centers have helped Amazon reduce customer service contacts by half. further Amazon has attempted to reduce its shipping costs by carefully selecting the locations of distribution centers. Moreover these ...

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    strategic supply chain management is discussed very comprehensively in this explanation..

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