Final answer:
Vendor-Managed Inventory (VMI) is the concept where the need to place orders loses significance and ordering cost becomes irrelevant. Amazon's inventory management system is an example of VMI.
Step-by-step explanation:
The concept described in the question is Vendor-Managed Inventory (VMI).
Vendor-Managed Inventory (VMI) is a system in which the supplier or vendor takes responsibility for managing and replenishing inventory at the customer's location. This means that the customer doesn't have to place orders for the items they need, as the supplier is constantly monitoring and restocking the inventory based on demand. In such a system, the concept of placing orders itself loses significance, and the concept of ordering cost loses relevance.
For example, Amazon's inventory management system can be seen as a form of VMI. They hold their inventories in huge warehouses and use highly computerized systems to monitor and manage their inventory. This allows them to constantly replenish their stock without the need for customers to place orders.