According to the dollar tree logistics case study, published by Darden business publishing by university of Virginia,

$1.$ Address at least $3$ following objectives $($a$-$e $)$in the report and explain them:

a$.$ Demonstrate basic trade$-$offs in distribution$-$network design.

b$.$ Apply scale$-$curve analysis.

c$.$ Reinforce inventory $$big picture$$ thinking.

d$.$ Consider broader business issues.

e$.$ Need to go beyond the hard numbers.

$2.$ What are the components of the cost structure of the Dollar Tree logistics system?

$3.$ How important is economy of scale for the DCs$?$ Compute the utilization curve for the Briar Creek DC and the scale curve for all the automated DCs$.$

$4.$ What other operations$-$strategy opportunities should Dollar Tree consider to further decrease total supply$-$chain costs?

$5.$ Which of the two options for DC capacity expansion, using the scale and utilization curves, do you recommend? Why?

$6.$ What do you recommend? $($vote in your group and explain it$)$

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

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

$7.$ 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.