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Inventory Proposal

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Inventory Proposal
Learning Team C was tasked with preparing a project proposal that would analyze and present data on an inventory management problem that Amazon Incorporated (Amazon) could face. The Summer Historical Inventory Data shown below was used in the calculations:
Month Year 1 Year 2 Year 3 Year 4
1 18,000 45,100 59,800 35,500
2 19,800 46,530 30,740 51,250
3 15,700 22,100 47,800 34,400
4 53,600 41,350 73,890 68,000
5 83,200 46,000 60,200 68,100
6 72,900 41,800 55,200 61,100
7 55,200 39,800 32,180 62,300
8 57,350 64,100 38,600 66,500
9 15,400 47,600 25,020 31,400
10 27,700 43,050 51,300 36,500
11 21,400 39,300 31,790 16,800
12 17,100 10,300 31,100 18,900
The following proposal includes a short description of Amazon, a short discussion of the inventory system problem that Amazon might face, and the benefits if the problem is solved. Team C used the dataset provided to calculate monthly indexes (using year 1 month 1 as the base), quarterly indexes (using year 1 quarter 1 as the base), and annual indexes of the four years. The busy and slow periods for each were identified. Histograms were constructed for the monthly, quarterly, and annual values. A regression equation, rate of change, and a forecast for year 7 inventory costs, using rate of change as the interest rate, were calculated as part of the analysis for the annual section.
Amazon
Amazon is a large, internet based business that has been able to maintain its success partially due to the effectiveness of its inventory system. Amazon is an online retailer launched in 1995 by Jeff Bezos (“Bezos, Jeff,” 2002). He wanted to create a company where customers could buy anything they wanted online. Jeff Bezos set up his business in his garage with $1 million raised from family and friends (“Bezos, Jeff,” 2002). He initially started selling books and has turned Amazon into the largest

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