Question

1. Why is Amazon building more warehouses as it grows? How many warehouses should it have and where should they be located?

2. Should Amazon stock every product it sells?

Answer 1

1. Why is Amazon building more warehouses as it grows? How many warehouses should it have and where should they be located?

Amazon has continued to expand their products that they sell online. They have added product category such as jewelry, electronic apparels, toys and shoes etc. As a result Amazon is building many number of warehouses , This is for reduce the transportation cost which is very high since Amazon is a global online company. As the company grows, it is important to add warehouses which allows to react more quickly for the customer order. It is clear that when there is number of warehouses increases the response time reduces and when the number of warehouses decreases the response time increases.

Amazon has nearly about 50 warehouses, 20 are located at USA and rest 30 are in Canada, Germany, France, UK,Italy, Japan, China.

2. Should Amazon stock every product it sells?

No, Amazon cannot stock every produt it sells, They should stock only those product which has higher demand. for example it can stock books which has highest demand