Question: Case study questions due by the start of class on 3 / 2 6 1 . What are the cost elements of Dollar Tree s

Case study questions due by the start of class on 3/26
1. What are the cost elements of Dollar Trees logistics system and each cost elements drivers?
2. How important is economy of scale for all of Dollar Trees DCs? Why?
3. Do capacity utilization rates differ between the differently sized DCs? Why or why not? Provide
comparisons, and research and report on what utilization rate goals Dollar Tree should strive for.
(Update those to current utilization rate range expectations. Cite your references.)
4. Does the unit cost differ between the different DCs? Why or why not? Provide comparisons, and
research and report on what unit cost goals Dollar Tree should strive for. (Update those to current
unit cost range expectations. Cite your references.)
5. What other strategic opportunities should Dollar Tree consider to further decrease total supply-
chain costs? Justify (quantitatively and/or qualitatively) implementing those opportunities.
6. Which of the two proposed options for DC capacity expansion do you recommend, expand or build
new? Justify your response quantitatively and qualitatively.
standards apply.

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