Read page 397. The discussion will focus around Amazon and the content in Chapter 6.

Applying the concepts from Chapter 6, answer the following: Would Amazon have a merchandise turnover similar to Lululemon Athleticas? Explain briefly why or why not. What does inventory demand planning refer to? Identify another type of retailer who would have a low or high inventory turnover and why?

Jeff Bezos, founder and CEO of Amazon.com, is known for his innovation and outside-the-box thinking when it comes to meeting customer needs and standing out from the competition. He is committed to having the largest selection of items A Leader in Retail Innovation Amazon.com: and the best pricing, and is dedicated to providing engaged customer service. The company's many technological initia- aves includes introducing new products and aligning with Amazon's mission to be "Earth's most customer-centric com- pany where people can find and discover anything they want to buy online." These advances include products such as Fre TV, Amazon Fire Phone, and Amazon Kindle Fire tablets. The company's recent acquisitions of Ring, a video doorbell. and Twitch, a game service, further broaden its product scope. Amazon is demonstrating to customers that it is a one-stop shop for everything they can dream of. This mega online retailer has several pop-up kiosks in major cities to feature its technical product offerings, and in 2018 opened its first brick-and-mortar convenience store called Amazon Go in Seattle, with no cashiers or checkout lines. Customers just download the app, pick up their items, and walk out of the store. The store's inventory is updated and the customer is billed automatically through the Amazon Go app as they exit the store. Amazon acquired the robotics company Kiva Systems in March 2012 with the intent to improve warehouse effi- ciency and tighten delivery timelines for customers. With the deployment of 10,000 robots in fiscal 2014, workers are better able to focus their time and efforts on packing goods and expediting them to the customer. Amazon workers used to walk many kilometres each day to fulfill customer orders, with over 150 million inventory items to manage and a 500,000-square-foot warehouse (refer to the YouTube video below illustrating the warehouse functionality. "Inside One of Amazon's Busiest Days," presented by CNN). According to Amazon executive Dave Clark, Kiva robots have cut operating expenses by about 20%"; Clark indicates that this would translate to roughly $22 million in cost savings for each fulfillment center." This savings was derived by improving the efficiency of the warehouses. Kiva robots re- suted in reduced inventory cycle times from 60 to 75 minutes to approximately 15 minutes, and inventory storage grew 50% due to more efficient use of space. With the new Kiva robots all inventory is stored on "pods," which function like a portable shelf. When merchandise ventory is received each item is scanned, assigned a location in inventory, and stored in the up to date perpetual nutes an online purchase, the inventory item's location is retrieved digitally ventory records When SURE with the new Kiva robots all inventory is stored on "pods," which function like a portable shelf. When merchandise and used to direct the Kiva robot to the item in the warehouse. Upon arriving at the appropriate pod storing the item, the robot connects itself to the shelf and delivers the shelf to human workers who pack the items in boxes and send them off for shipment. The YouTube video linked below, "High-Speed Robots Part 1: Meet BettyBot in 'Human Exclusion Zone' Warehouses-The Window-WIRED," demonstrates how these kiva robots navigate through a complex ware- house to bring products to the packer for packing and shipping. The company has expanded same-day delivery with "get it today" capabilities on over a million eligible items. Amazon Prime usage is expanding, with customers benefiting from free two-day delivery and access to free movies, games, and TV episodes for an annual membership fee of $99. Amazon Prime Air is the company's latest R&D initiative that has developed drones called octocopters (shown in the accompanying photo) to pick up products in small yellow buckets at Amazon's warehouse and deliver them to customers in as little as 30 minutes after purchase at Amazon.com. And, in a move to expand its offering of market-fresh groceries, Amazon made a $13.7 billion acquisition of Whole Foods Markets. Amazon is currently waiting for the Federal Aviation Administration to grant approval for the drones and develop regulations for unmanned aerial vehicles. In March 2014, Amazon was granted approval to test the drone delivery system in highly monitored conditions, and the US Patent and Trademark Office has published Amazon's patent application for the drone delivery system. In the meantime, Amazon continues to impress consumers with its incredible selection of online goods, competitive pricing, and quick delivery options. In its 2017 annual report, Amazon had $4.9 billion in inventory and discloses that it accounts for its inventory using the first-in, first-out inventory costing method, which assumes that inventory is sold in the order it is acquired; this method is demonstrated later in this chapter. Sources: http://www.amazon.com/b?node=8037720011; www.amazon.com: http://www.kivasystems.com/amazon-press/: Amazon.com 2013 annual report: Amazon.com 2014 annual report: http://www.cnn.com/2015/05/12/politics/amazon-patent-drone-delivery/, http://www.businessinsider.com/kiva- robots-save-money-for-amazon-2016-6: https://www.bloomberg.comews/articles/2017-06-22/amazon-vision-of-deliveries-by-drone-gets-boost-in-taa- measure; and https://www.geekwire.com/2017/amazons-13-7b-whole-foods-deal-close-monday-prime-Integrated-checkout-system/ Video Links: "Inside One of Amazon's Bustest Days: presented by CNNMoney. demonstrates the inventory management required to fulfill a customer order before the kiva robots. https://www.youtube.com/watch?v=22BsOnayas Retty Rot in 'Human Exclusion 50% due to more efficient use of space. Inventory is received each item is scanned, assigned a location in inventory, and stored in the up to-date perpetual inventory records, When a customer executes an online purchase, the inventory item's location is retrieved digitally Suated later in this chapter. Sources: http://www.amazon.com/b?node=8037720011; www.amazon.com; http://www.kivasystems.com/amazon-press/: Amazon.com 2013 annual report: Amazon.com 2014 annual report: http://www.cnn.com/2015/05/12/politics/amazon-patent-drone-delivery/; http://www.businessinsider.com/kiva- robots-save-money-for-amazon-2016-6; https://www.bloomberg.comews/articles/2017-06-22/amazon-vision-of-deliveries-by-drone-gets-boost-in-faa- measure; and https://www.geekwire.com/2017/amazons-13-7b-whole-foods-deal-close-monday-prime-integrated-checkout-system/ Video Links: "Inside One of Amazon's Busiest Days," presented by CNNMoney, demonstrates the inventory management required to fulfill a customer order before the kiva robots. https://www.youtube.com/watch?v=Z2BsOnqVyqs The Kiva robots' assistance in warehouse management is presented in the YouTube video "High-Speed Robots Part 1: Meet Betty Bot in 'Human Exclusion Zone' Warehouses- The Window-WIRED." https://www.youtube.com/watch?v=8gy5tYVR-28 Amazon.com: A Leader in Retail Innovation Jeff Bezos, founder and CEO of Amazon.com, is known for his innovation and outside-the-box thinking when it comes to cut operating expenses by about 20%"; Clark indicates that this "would translate to roughly $22 million in cost savings for each fulfillment center." This savings was derived by improving the efficiency of the warehouses. Kiva robots re- sulted in reduced inventory cycle times from 60 to 75 minutes to approximately 15 minutes, and inventory storage grew 50% due to more efficient use of space. With the new kiva robots all inventory is stored on "pods," which function like a portable shelf. When merchandise iaitally moeting customer needs and standing out from the competitions Beis committed to having the largest selection of items and the best pricing, and is dedicated to providing engaged customer service. The company's many technological initia- tives includes introducing new products and aligning with Amazon's mission to be "Earth's most customer-centric com- pany where people can find and discover anything they want to buy online." These advances include products such as Fire TV, Amazon Fire Phone, and Amazon Kindle Fire tablets. The company's recent acquisitions of Ring, a video doorbell, and Twitch, a game service, further broaden its product scope. Amazon is demonstrating to customers that it is a one-stop shop for everything they can dream of. This mega online retailer has several pop-up kiosks in major cities to feature its technical product offerings, and in 2018 opened its first brick-and-mortar convenience store called Amazon Go in Seattle, with no cashiers or checkout lines. Customers just download the app, pick up their items, and walk out of the store. The store's inventory is updated and the customer is billed automatically through the Amazon Go app as they exit the store. Amazon acquired the robotics company Kiva Systems in March 2012 with the intent to improve warehouse effi- ciency and tighten delivery timelines for customers. With the deployment of 10,000 robots in fiscal 2014, workers are better able to focus their time and efforts on packing goods and expediting them to the customer. Amazon workers used to walk many kilometres each day to fulfill customer orders, with over 150 million inventory items to manage and 0.500,000-square-foot warehouse (refer to the YouTube video below illustrating the warehouse functionality, "Inside one of Amazon's Busiest Dayspresented by CNN). According to Amazon executive Dave Clark, "Kiva robots have and stored in the up to-date perpetual With the new Kiva robots all inventory is stored on pods," which function like a portable shelf. When merchandise inventory is received each item is scanned, assigned a location in inventory, and stored in the up to-date perpetual inventory records. When a customer executes an online purchase, the inventory item's location is retrieved digitally the robot connects itself to the shelf and delivers the shelf to human workers who pack the items in boxes and send and used to direct the Kiva robot to the item in the warehouse. Upon arriving at the appropriate pod storing the item, them off for shipment. The YouTube video linked below, High-Speed Robots Part 1: Meet Betty Bot in 'Human Exclusion Source: http://www.amazon.com/b?node=8037720011; www.amazon.com: http://www.kivasystems.com/amazon-press/: Amazon.com 2013 annual Teport: Amazon.com 2014 annual report; http://www.cnn.com/2015/05/12/politics/amazon-patent-drone-delivery: http://www.businessinsider.com/kiva- toboots-save-money-for-amazon-2016-6; https://www.bloomberg.comews/articles/2017-06-22/amazon-vision-of-deliveries-by-drone-gets-boost-in-faa- measure, and https://www.geekwire.com/2017/amazons-13-7b-whole-foods-deal-close-monday-prime-integrated-checkout-system/ Video Links. "Inside One of Amazon's Busiest Days," presented by CNNMoney, demonstrates the inventory management required to fulfill a customer oder before the kiva robots. https://www.youtube.com/watch?v=Z2BsOnqVyqs 50% due to here Warehouses-The Window-WIRED." demonstrates how these Kiva robots navigate through a complex ware- house to bring products to the packer for packing and shipping. The company has expanded same-day delivery with get it today capabilities on over a million eligible items. Amazon Prime usage is expanding, with customers benefiting from free two-day delivery and access to free movies, games, and TV episodes for an annual membership fee of $99. Amazon Prime Air is the company's latest R&D initiative that has developed drones called octocopters (shown in the accompanying photo) to pick up products in small yellow buckets at Amazon's warehouse and deliver them to customers in as little as 30 minutes after purchase at Amazon.com. And, in a move to expand its offering of market-fresh groceries, Amazon made a $13.7 billion acquisition of Whole Foods Markets. Amazon is currently waiting for the Federal Aviation Administration to grant approval for the drones and develop regulations for unmanned aerial vehicles. In March 2014, Amazon was granted approval to test the drone delivery system in highly monitored conditions, and the US Patent and Trademark Office has published Amazon's patent application for the drone delivery system. In the meantime, Amazon continues to impress consumers with its incredible Selection of online goods, competitive pricing, and quick delivery options. In its 2017 annual report, Amazon had 549 billion in inventory and discloses that it accounts for its inventory using the first-in, first-out inventory costing method, which assumes that inventory is sold in the order it is acquired; this method is demonstrated later in this chapter. Milit Part 1: Meet BettyBot in "Human Exclusion Jeff Bezos, founder and CEO of Amazon.com, is known for his innovation and outside-the-box thinking when it comes to meeting customer needs and standing out from the competition. He is committed to having the largest selection of items A Leader in Retail Innovation Amazon.com: and the best pricing, and is dedicated to providing engaged customer service. The company's many technological initia- aves includes introducing new products and aligning with Amazon's mission to be "Earth's most customer-centric com- pany where people can find and discover anything they want to buy online." These advances include products such as Fre TV, Amazon Fire Phone, and Amazon Kindle Fire tablets. The company's recent acquisitions of Ring, a video doorbell. and Twitch, a game service, further broaden its product scope. Amazon is demonstrating to customers that it is a one-stop shop for everything they can dream of. This mega online retailer has several pop-up kiosks in major cities to feature its technical product offerings, and in 2018 opened its first brick-and-mortar convenience store called Amazon Go in Seattle, with no cashiers or checkout lines. Customers just download the app, pick up their items, and walk out of the store. The store's inventory is updated and the customer is billed automatically through the Amazon Go app as they exit the store. Amazon acquired the robotics company Kiva Systems in March 2012 with the intent to improve warehouse effi- ciency and tighten delivery timelines for customers. With the deployment of 10,000 robots in fiscal 2014, workers are better able to focus their time and efforts on packing goods and expediting them to the customer. Amazon workers used to walk many kilometres each day to fulfill customer orders, with over 150 million inventory items to manage and a 500,000-square-foot warehouse (refer to the YouTube video below illustrating the warehouse functionality. "Inside One of Amazon's Busiest Days," presented by CNN). According to Amazon executive Dave Clark, Kiva robots have cut operating expenses by about 20%"; Clark indicates that this would translate to roughly $22 million in cost savings for each fulfillment center." This savings was derived by improving the efficiency of the warehouses. Kiva robots re- suted in reduced inventory cycle times from 60 to 75 minutes to approximately 15 minutes, and inventory storage grew 50% due to more efficient use of space. With the new Kiva robots all inventory is stored on "pods," which function like a portable shelf. When merchandise ventory is received each item is scanned, assigned a location in inventory, and stored in the up to date perpetual nutes an online purchase, the inventory item's location is retrieved digitally ventory records When SURE with the new Kiva robots all inventory is stored on "pods," which function like a portable shelf. When merchandise and used to direct the Kiva robot to the item in the warehouse. Upon arriving at the appropriate pod storing the item, the robot connects itself to the shelf and delivers the shelf to human workers who pack the items in boxes and send them off for shipment. The YouTube video linked below, "High-Speed Robots Part 1: Meet BettyBot in 'Human Exclusion Zone' Warehouses-The Window-WIRED," demonstrates how these kiva robots navigate through a complex ware- house to bring products to the packer for packing and shipping. The company has expanded same-day delivery with "get it today" capabilities on over a million eligible items. Amazon Prime usage is expanding, with customers benefiting from free two-day delivery and access to free movies, games, and TV episodes for an annual membership fee of $99. Amazon Prime Air is the company's latest R&D initiative that has developed drones called octocopters (shown in the accompanying photo) to pick up products in small yellow buckets at Amazon's warehouse and deliver them to customers in as little as 30 minutes after purchase at Amazon.com. And, in a move to expand its offering of market-fresh groceries, Amazon made a $13.7 billion acquisition of Whole Foods Markets. Amazon is currently waiting for the Federal Aviation Administration to grant approval for the drones and develop regulations for unmanned aerial vehicles. In March 2014, Amazon was granted approval to test the drone delivery system in highly monitored conditions, and the US Patent and Trademark Office has published Amazon's patent application for the drone delivery system. In the meantime, Amazon continues to impress consumers with its incredible selection of online goods, competitive pricing, and quick delivery options. In its 2017 annual report, Amazon had $4.9 billion in inventory and discloses that it accounts for its inventory using the first-in, first-out inventory costing method, which assumes that inventory is sold in the order it is acquired; this method is demonstrated later in this chapter. Sources: http://www.amazon.com/b?node=8037720011; www.amazon.com: http://www.kivasystems.com/amazon-press/: Amazon.com 2013 annual report: Amazon.com 2014 annual report: http://www.cnn.com/2015/05/12/politics/amazon-patent-drone-delivery/, http://www.businessinsider.com/kiva- robots-save-money-for-amazon-2016-6: https://www.bloomberg.comews/articles/2017-06-22/amazon-vision-of-deliveries-by-drone-gets-boost-in-taa- measure; and https://www.geekwire.com/2017/amazons-13-7b-whole-foods-deal-close-monday-prime-Integrated-checkout-system/ Video Links: "Inside One of Amazon's Bustest Days: presented by CNNMoney. demonstrates the inventory management required to fulfill a customer order before the kiva robots. https://www.youtube.com/watch?v=22BsOnayas Retty Rot in 'Human Exclusion 50% due to more efficient use of space. Inventory is received each item is scanned, assigned a location in inventory, and stored in the up to-date perpetual inventory records, When a customer executes an online purchase, the inventory item's location is retrieved digitally Suated later in this chapter. Sources: http://www.amazon.com/b?node=8037720011; www.amazon.com; http://www.kivasystems.com/amazon-press/: Amazon.com 2013 annual report: Amazon.com 2014 annual report: http://www.cnn.com/2015/05/12/politics/amazon-patent-drone-delivery/; http://www.businessinsider.com/kiva- robots-save-money-for-amazon-2016-6; https://www.bloomberg.comews/articles/2017-06-22/amazon-vision-of-deliveries-by-drone-gets-boost-in-faa- measure; and https://www.geekwire.com/2017/amazons-13-7b-whole-foods-deal-close-monday-prime-integrated-checkout-system/ Video Links: "Inside One of Amazon's Busiest Days," presented by CNNMoney, demonstrates the inventory management required to fulfill a customer order before the kiva robots. https://www.youtube.com/watch?v=Z2BsOnqVyqs The Kiva robots' assistance in warehouse management is presented in the YouTube video "High-Speed Robots Part 1: Meet Betty Bot in 'Human Exclusion Zone' Warehouses- The Window-WIRED." https://www.youtube.com/watch?v=8gy5tYVR-28 Amazon.com: A Leader in Retail Innovation Jeff Bezos, founder and CEO of Amazon.com, is known for his innovation and outside-the-box thinking when it comes to cut operating expenses by about 20%"; Clark indicates that this "would translate to roughly $22 million in cost savings for each fulfillment center." This savings was derived by improving the efficiency of the warehouses. Kiva robots re- sulted in reduced inventory cycle times from 60 to 75 minutes to approximately 15 minutes, and inventory storage grew 50% due to more efficient use of space. With the new kiva robots all inventory is stored on "pods," which function like a portable shelf. When merchandise iaitally moeting customer needs and standing out from the competitions Beis committed to having the largest selection of items and the best pricing, and is dedicated to providing engaged customer service. The company's many technological initia- tives includes introducing new products and aligning with Amazon's mission to be "Earth's most customer-centric com- pany where people can find and discover anything they want to buy online." These advances include products such as Fire TV, Amazon Fire Phone, and Amazon Kindle Fire tablets. The company's recent acquisitions of Ring, a video doorbell, and Twitch, a game service, further broaden its product scope. Amazon is demonstrating to customers that it is a one-stop shop for everything they can dream of. This mega online retailer has several pop-up kiosks in major cities to feature its technical product offerings, and in 2018 opened its first brick-and-mortar convenience store called Amazon Go in Seattle, with no cashiers or checkout lines. Customers just download the app, pick up their items, and walk out of the store. The store's inventory is updated and the customer is billed automatically through the Amazon Go app as they exit the store. Amazon acquired the robotics company Kiva Systems in March 2012 with the intent to improve warehouse effi- ciency and tighten delivery timelines for customers. With the deployment of 10,000 robots in fiscal 2014, workers are better able to focus their time and efforts on packing goods and expediting them to the customer. Amazon workers used to walk many kilometres each day to fulfill customer orders, with over 150 million inventory items to manage and 0.500,000-square-foot warehouse (refer to the YouTube video below illustrating the warehouse functionality, "Inside one of Amazon's Busiest Dayspresented by CNN). According to Amazon executive Dave Clark, "Kiva robots have and stored in the up to-date perpetual With the new Kiva robots all inventory is stored on pods," which function like a portable shelf. When merchandise inventory is received each item is scanned, assigned a location in inventory, and stored in the up to-date perpetual inventory records. When a customer executes an online purchase, the inventory item's location is retrieved digitally the robot connects itself to the shelf and delivers the shelf to human workers who pack the items in boxes and send and used to direct the Kiva robot to the item in the warehouse. Upon arriving at the appropriate pod storing the item, them off for shipment. The YouTube video linked below, High-Speed Robots Part 1: Meet Betty Bot in 'Human Exclusion Source: http://www.amazon.com/b?node=8037720011; www.amazon.com: http://www.kivasystems.com/amazon-press/: Amazon.com 2013 annual Teport: Amazon.com 2014 annual report; http://www.cnn.com/2015/05/12/politics/amazon-patent-drone-delivery: http://www.businessinsider.com/kiva- toboots-save-money-for-amazon-2016-6; https://www.bloomberg.comews/articles/2017-06-22/amazon-vision-of-deliveries-by-drone-gets-boost-in-faa- measure, and https://www.geekwire.com/2017/amazons-13-7b-whole-foods-deal-close-monday-prime-integrated-checkout-system/ Video Links. "Inside One of Amazon's Busiest Days," presented by CNNMoney, demonstrates the inventory management required to fulfill a customer oder before the kiva robots. https://www.youtube.com/watch?v=Z2BsOnqVyqs 50% due to here Warehouses-The Window-WIRED." demonstrates how these Kiva robots navigate through a complex ware- house to bring products to the packer for packing and shipping. The company has expanded same-day delivery with get it today capabilities on over a million eligible items. Amazon Prime usage is expanding, with customers benefiting from free two-day delivery and access to free movies, games, and TV episodes for an annual membership fee of $99. Amazon Prime Air is the company's latest R&D initiative that has developed drones called octocopters (shown in the accompanying photo) to pick up products in small yellow buckets at Amazon's warehouse and deliver them to customers in as little as 30 minutes after purchase at Amazon.com. And, in a move to expand its offering of market-fresh groceries, Amazon made a $13.7 billion acquisition of Whole Foods Markets. Amazon is currently waiting for the Federal Aviation Administration to grant approval for the drones and develop regulations for unmanned aerial vehicles. In March 2014, Amazon was granted approval to test the drone delivery system in highly monitored conditions, and the US Patent and Trademark Office has published Amazon's patent application for the drone delivery system. In the meantime, Amazon continues to impress consumers with its incredible Selection of online goods, competitive pricing, and quick delivery options. In its 2017 annual report, Amazon had 549 billion in inventory and discloses that it accounts for its inventory using the first-in, first-out inventory costing method, which assumes that inventory is sold in the order it is acquired; this method is demonstrated later in this chapter. Milit Part 1: Meet BettyBot in "Human Exclusion