Case 1
Case 1
https://hbsp.harvard.edu/import/1178904
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?
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
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.
Provide a brief overview of the case study topic and its relevance.
Include a concise thesis statement highlighting the case study's main purpose.
All questions (above) must be included in the text without screenshots and answered
properly with data analysis if needed.
3. Conclusion (10%)
Cite the references according to the APA (American Psychological Association) style
guidelines.
Note: It is essential to adhere to academic integrity and avoid plagiarism. You may seek assistance from
AI platforms but ensure that your work reflects your own analysis and interpretation. High similarity
detected through plagiarism detection software may be reported to the university.
Remember, this case study aims to demonstrate your understanding and analytical skills. Use the
provided instructions as a framework to develop a comprehensive and well-structured case study report.