Amazon case study

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Case study: Amazon improvement of customer service by improving Inventory management

Project Report

Sulaman Muhammad


Submitted to: Dr. Mujtaba Agha

Department of Engineering Management

Muhammad Ali Jinnah University, Islamabad

June 12, 2013

Introduction:, Inc. is a multinational electronic commerce company founded by Jeff Bezos in 1995. The headquarter of the company is situated in Washington, USA. initially start an online bookstore and sell books in united states and all over the world, but when their business grows and their customers increase, they diversify their business and also start selling DVD's, CD's, MP3 downloads, video games, software, toys, jewelry, furniture, electronics and many more items on their website.

Now is the world largest e-commerce company having 51,300 employees, 152 million active customers, annual revenue of $48 billion which is 27% more than Google and their website ranked 16th all over the world by internet traffic.

Amazon has offices, ware houses, fulfillment centers and customer service centers across the globe in six continents. ship their products to more than 200 countries. They have the world largest database with total capacity of 7.8 terabytes, 18.5 terabytes and 24.7 terabytes respectively.

Amazon has separate websites for United Kingdom, Canada, France, Unites states, Italy, Germany, Spain, china, Brazil, Japan and India. They are also planning to launch website in Sweden, Poland and Netherlands.

Fig 1.0: Shows the performance of Amazon in 2012 (Source: [ Alexa, Brandz, market capitalization as of the 5th November 2012])

Inventory Management:

Inventory management is one of the important area of supply chain, it plays an important role to achieve customer service goals. focus on all the areas of supply chain including inventory management to improve their customer services by decreasing response time and quick shipment of product to their customers.

Inventory management...