They were not able to generate a profitand went out of business. To ensure meeting promises, companies must forecast whatcustomers want and maintain adequate inventories of goods, manage distribution centersand warehouses, operate fleets of trucks, and schedule deliveries while keeping costs lowand customers satisfied. Many companies like Amazon.com manage almost all aspectsof their operation. Other companies hire outside firms for certain functions, such asoutsourcing the management of inventories and deliveries to UPS. Competition amonge-tailers has become intense as customers demand increasingly shorter delivery times andhighly customized products. Same-day service has become common in metropolitanareas. For example, Barnesandnoble.com provides same-day delivery in Manhattan, LosAngeles, and San Francisco. Understanding and managing the operations function of anon-line business has become essential in order to remain competitive.
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