Case study: Fulfillment by Amazon



3-4. In your own words, summarize AllRoad Parts’ competitive strategy.


3-5. Summarize the advantages and disadvantages for AllRoad Parts to sell items via Would you recommend that the company do so?




3-6. For items that it sells itself, compute AllRoad Parts’ cost of using FBA to process:


a. An order of 10 sets of bicycle pedals weighing a total of 25 pounds.


b. An order of a single set of bicycle pedals weighing 2.5 pounds.


c. The cost of a cycling shirt weighing 10 ounces.


d. The cost of storing 1,000 sets of bicycle pedals for 3 months (using your own assumptions).


3-7. If AllRoad Parts were to use FBA, what business processes would it not need to develop? What cost would it save?


3-8. If AllRoads Parts were to use FBA, what information systems would it not need to develop? What costs would it save?


3-9. If AllRoad Parts were to use FBA, how would it integrate its information systems with Amazon’s?


3-10. In your opinion, does it make sense for AllRoad Parts to use FBA? Justify your answer.


3-11. How, if at all would your answers to question 3-4 through 3-10 change if AllRoad Parts makes some of its parts using 3D printing?