$1.$ Based on the case study "Dollar Tree Logistics" What do you recommend?

a$.$ Expand or b$.$ Build new.

c$.$ Does your recommendation conflict with your quantification of the benefits for anyone?

$2.$ Based on the case study "Dollar Tree Logistics" What are the cost elements and drivers? $($What percent each, explain it$)$

a$.$ Inbound transportation

b$.$ DC facility cost

c$.$ Outbound transportation

d$.$ Inventory carrying cost.

Hint: Compute the DC cost$,$ using the scale and utilization calculations, and the outbound trucking cost for each option, for the first three years after expansion $(2005),$ then test the sensitivity of the cost to the forecast of sales growth. Don$$t consider the time value of money.