1.Assess Amazon’s supply chain. How is Amazon’s supply chain different from that of traditional brick-and-mortar retailers? Use information provided in Exhibit 1 & 2 of the case study.
Your analysis should include the growth of the e-commerce sector, Amazon’s position in the market, approaches to inventory management, various distribution channels deployed by Amazon, and major challenges faced by Amazon. (35points)
2. Calculate, compare and interpret some of the major financial data among the three companies based on Exhibit 1. (35 points)
i.Inventory Turns (Cost of Sales / Inventory)
ii. Days Inventory (Inventory/Cost of Sales * 365)
iii.Days Receivable (Account Receivables / Sales * 365)
iv. Days Payable (Account Payable / (Cost of Sales /365)
v.Cash Conversion Cycle (Days of inventory + Days Receivables – Days Payable)
vi. ROA vii.ROE
(sample excel template is attached)
3. Identify different ways Amazon creates value (for various stakeholders) and revenue. What are the advantages to the structure of Amazon’s supply chain and management of its supply chain operations? (30 points)
Your discussion can include Amazon’s strategies in the areas of- retailing/sales, information systems, supply/procurement, and distribution (transportation/logistics). Feel free to use some of your observations from your answer to Question 2 of this assignment.