Consider the supply chain for Amazon.com. Assume that Amazon.com buys books directly from publishers and also buys from book distributors. Ignore used book sales.

a. Diagram this supply chain. Use Figure CE10-2 as an example. Because shippers are so important to Amazon.com, include them in your diagram.

CE10-3.

b. Explain how the four factors described in Q3 affect this supply chain’s performance. Describe how these factors affect Amazon.com’s profitability.

c. Do you think the bullwhip effect is a problem for this supply chain? Why or why not?

d. Explain how Amazon.com could use inter-enterprise information systems to obtain time and cost savings.