Question

One alternative to enhance the service for Amazon Prime customers is to increase the number of order fulfillment centers to provide faster delivery and service. Which of the following would be considered Pros for this alternative?

[mark all correct answers]

a. increased speed of operations

b. operating and inventory cost increases

c. hiring & training costs

d. taxes

e. long-term cost savings

f. sustained competitive advantage

Answer 1

Option A. increased speed of operations Option E. long-term cost savings and Option F. sustained competitive advantage. These are the expected benefits from increasing the number of order fulfilment offices.

The reason is that with more offices, each geographical region will now be covered with a greater number of dealers so that each office can serve more intensly to its customers. As the area of services per office gets smaller there are cost savings, and increased service speed. Competitive advantage can be attained when the greater number of offices ensure timely delivery with a greater variety.