Buck

Tree

Logis-cs

and

Distribu-on

Center

Decision

Dollar

Shrub

•  Primary

merchandises:

–  $1

–  Consumable

items:

candy,

food,

health

and

beauty

proper care,

house

products

(paper,

plas-cs,

chemicals)

–  Variety

merchandise:

toys,

durable

house

wares,

giCs,

get together

goods,

gree-ng

cards

–  Seasonal

products:

Easter

containers,

summer

toys,

lawn

and

garden

tools,

Halloween

and

Christmas

merchandise

40%

imports,

7%

closeout

items,

relax

domes-c

sellers

Dollar

Tree—Opera-ons

Competency

•  What

happen to be

the

opera-onal

priori-es?

•  What

truly does

Dollar

Woods

do

to

achieve

low

costs?

Dollars

Tree

Logis-cs

What

happen to be

the

major

categories

of

cost?

Price

Structure

Inventory

Carrying

Inbound

Total

DC

Outbound

What

are

the

drivers

of

the

costs?

•  Incoming

(37%)

–  Geography,

length

from

interface

–  Function

of

transportation

(train,

truck)

–  Expense

of

fuel

•  DC

facility

price

(28%)

–  Fixed

expense

•  Range

economies

•  U-liza-on

–  Variable

price,

regional

salary

–  Procedure

Technology

Effect

of

Even more

DCs

•  No

Effect?

Increase?

Decrease?

What

happen to be

the

individuals

of

the

costs?

•  Outbound

(25%)

–  Location,

distance

to

stores

–  Delivery

consistency

–  Expense

of

fuel

•  Inventory

carrying

(10%)

Effect

of

More

DCs

•  Simply no

Effect?

Enhance?

Decrease?

The

two

op-ons

and

the

trade-­‐offs

•  Expand

Briar

Creek

–  Economies

of

scale

•  Lower

п¬Ѓxed

cost

•  Might

selling

inventory

always be

higher?

•  Build

new

DC

in

Harcord

–  Lower

outbound

transport

costs

•  Better

to

the

stores

•  Should

we all

deliver

even more

frequently

to

reduce

full

inventory?

Scale

Analysis

•  We

can easily

measure

capacity

in:

–  Square

Toes

–  Storage

Capacity

–  Maximum

Cartons/Year

(=

Carte

Handled/U-liza-on).

•  Which

1

should

all of us

use?

Adjust

the

Alloca-on

of

Fixed

Costs

to

Obtain

the

Full

Capacity

Alloca-on

Position

Chesapeake

Olive Branch

Stockton

Savannah

Briar Creek

Marietta

Joliet

Salt Lake Metropolis

Ridgefield

Carte

Tags:

Pedagogy Essay

Centralia No . 5 Essay