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Zachary Peter Professor HatziyannisManagement Information Systems2 February 2014Fulfillment by Amazon Case StudyQuestion #1Amazon Buys goodsTakes both ownership and physical possessionPlaces those goods into inventory Sells from that inventory Sell goods on a consignment basis, but such sales are not its primary offering.GearUp Buys items only after it has sold them at auctionDoes not place an order until it knows how many of which goods it has soldOrders in bulkTakes ownership and deliveryRepackages the orders for shipment in small lots to its customersQuestion #2GearUp is able to sell its good on , how?Using Fulfillment by Amazon (FBA)Service which other sellers can ship goods to Amazon warehouses for stocking, order packaging, and shipment.Pay a fee for the service as well as for inventory spaceAmazon uses its own inventory management and order fulfillment business processes and information systems to fulfill the FBA customers’ orders.Question #3Order Handling($1.00) + Pick & Pack(10 * $1.00) + Weight handling(25 * $0.37) = $20.25Order Handling($1.00) + Pick & Pack(1 * $1.00) + Weight handling(2.5 * $0.37) = $2.93Order Handling($1.00) + Pick & Pack(1 * $1.00) + Weight handling(0.625 * $0.37) = $2.23Storage(1000 * $0.45) * 3/12 = $112.50Question #4Some Business processes GearUp would not need to develop would be:WebsiteAdvertisementCustomer ServiceWhat costs would it save:Shipping and HandlingStorageWebsite DevelopmentPayroll Question #5Would not need to developStandardized InterfaceWeb ServicesWhat costs would it save:Developing websiteDeveloping own InterfaceQuestion #6Integrate information systems:Using Amazon Marketplace Web Service(MWS)Web-standard technologyProgrammatically exchange data on ListingsOrderPaymentsReportsDirectly integrate their systems with the FBA systems which helps creating and sending shipments more easilyQuestion #7It makes sense for GearUp to use FBAAlready developed standardize interfaceHigh standing company in the marketEasy to useVery CheapIntegrated Information Systems ................
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