Case Dollar Tree Logistics

1416 Words May 15th, 2015 6 Pages
Dollar Tree Logis-cs and Distribu-on Center Decision

Dollar Tree • Main merchandises: – $1

– Consumable merchandise: candy, food, health and beauty care, house wares (paper, plas-cs, chemicals) – Variety merchandise: toys, durable house wares, giCs, party goods, gree-ng cards – Seasonal goods: Easter baskets, summer toys, lawn and garden equipments, Halloween and Christmas goods 40% imports, 7% closeout items, rest domes-c vendors

Dollar Tree—Opera-ons Competency • What are the opera-onal priori-es? • What does
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• The regression give us: – Log(FC / Unit) = 1.5986 + (-­‐.323)* Log(MxCrtn/Yr)

• To get back to FC / Unit, we need to take 10^(Log(FC / Unit)). – Predicted FC/Unit = 10^(1.5986 + (-­‐.323)* Log(MxCrtn/Yr))

Predicted vs. Actual $0.220

FC / Unit

$0.200
$0.180
$0.160
$0.140
$0.120
0

20,000,000

40,000,000

Max Carton Capacity / year

60,000,000

Effect on Total DC Cost Fixed and Variable DC Costs

Sensitivity Parameters

BC Current

Sq Ft.
(1000)
603

Capacity
Carton/Yr
22,117,639

FC / Unit at Full
Cap
$0.168

Var Cost*

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