TEAM CHALLENGE #2 & TEAM CHALLENGE #3

TEAM CHALLENGE #2 & TEAM CHALLENGE #3 DILLARD’S Inc. - revisited PART-I: INTRODUCTION & EXECUTIVE SUMMARY In this section of your report, you must summarize the problems you analyze in this team challenge. This section serves as a short introduction to the rest of the document. Briefly explain what the problems were and how you analyzed them. This section should not exceed 1 page. PART-II: TRANSPORTATION AND LOGISTICS In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-II. Your write-up will have two elements: analysis and recommendations. PART-II.1: ANALYSIS OF EXISTING OPERATIONS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Table-1 below by determining (a) to (m), •    explain clearly how you computed the values in Table-1 and how Dillard’s managers should interpret the values in that table. Distribution center  to shut down    Estimated minimum annual transportation cost for 2011 (using Excel Solver)    Estimated percentage increase in costs None of them    (a)    N/A Mabelvale AR    (b)    (h) Gilbert AZ    (c)    (i) Valdosta GA    (d)    (j) Olathe KS    (e)    (k) Salisbury NC    (f)    (l) Fort Worth TX    (g)    (m) Table-1. Analysis of Dillard’s transportation costs for the fiscal year 2011. Part-II.2: RECOMMENDATIONS In this section of your report, you must answer the questions provided to you in Part-II.2 of the assignment. PART – III: INVENTORY MANAGEMENT OF SEASONAL GOODS AT DILLARD’S In this section of your report, you must analyze the scenario and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-III. Your write-up will have two elements: analysis and recommendations. PART-III.1: ANALYSIS OF ORDER QUANTITIES In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Tables 2,3, and 4 (see below), •    explain clearly how you computed the values and how Dillard’s managers should interpret the values in these tables. PART – III.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-III.2 of the assignment. Item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand? quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-2. Order quantities and inventory performance with current service level item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand?quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-3. Order quantities and inventory performance when the newsvendor model is used. INVENTORY PERFORMANCE OF THE MOST PROFITABLE PRODUCT Item #: _________________ Product Description: ____________________ Model     Quantity ordered    Safety stock level    Expected profit A: Newsvendor Model B: Newsvendor Model when price increases by 1% C: Newsvendor model when unit cost decreases by 1% D: Newsvendor model when forecast accuracy (standard deviation) improves (decreases) by 1% Summary: Percentage change in performance metric when compared to the newsvendor model (model A above) Model    % change in Quantity ordered    % change in Safety stock level    % change in Expected profit B: price increases by 1% C: unit cost decreases by 1% D: forecast accuracy (standard deviation) improves (decreases) by 1% Table-4. Effect of changes in price, cost, and forecast accuracy on the inventory performance of the most profitable product PART-IV. REDUCING INVENTORY SHRINKAGE In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided in Part-IV of the assignment. Your write-up will have two elements: analysis and recommendations. PART-IV.1: ANALYSIS OF STORE AUDIT RESULTS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    estimate the total loss for fiscal year 2011, •    prepare Figure 1, •    complete Table 5, •    explain clearly how you computed the values in your Pareto Chart and Table 5 and how Dillard’s managers should interpret the values in the chart and table. PART – IV.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-IV.2 of the assignment. Figure-1. Pareto chart that shows the frequency of shrink incidents and their causes Rank (based on frequency)    Source    Product Type    No. of incidents    Frequency  of incidents as a % of total    Cumulative % of incidents (starting from the top) 1 2 3 4 5 6 7 8 9 10 Table-5. Top ten most common shrink-related incidents at Dillard’s. REFERENCES Include the list of references for outside sources (books, articles, websites,…) here. Make sure you cite each reference in the main text. EXHIBITS All exhibits are provided here.  Any information or analysis that is not “mission critical” to your answers must be presented in an exhibit at the end of your report. Exhibits must be formatted clearly and must be referred from the main body of your report. TEAM CHALLENGE #2 & TEAM CHALLENGE #3 DILLARD’S Inc. - revisited ______________________________________________________________________________ NAMES (in capitals):        _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ ______________________________________________________________________________ PART-I: INTRODUCTION & EXECUTIVE SUMMARY In this section of your report, you must summarize the problems you analyze in this team challenge. This section serves as a short introduction to the rest of the document. Briefly explain what the problems were and how you analyzed them. This section should not exceed 1 page. PART-II: TRANSPORTATION AND LOGISTICS In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-II. Your write-up will have two elements: analysis and recommendations. PART-II.1: ANALYSIS OF EXISTING OPERATIONS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Table-1 below by determining (a) to (m), •    explain clearly how you computed the values in Table-1 and how Dillard’s managers should interpret the values in that table. Distribution center  to shut down    Estimated minimum annual transportation cost for 2011 (using Excel Solver)    Estimated percentage increase in costs None of them    (a)    N/A Mabelvale AR    (b)    (h) Gilbert AZ    (c)    (i) Valdosta GA    (d)    (j) Olathe KS    (e)    (k) Salisbury NC    (f)    (l) Fort Worth TX    (g)    (m) Table-1. Analysis of Dillard’s transportation costs for the fiscal year 2011. Part-II.2: RECOMMENDATIONS In this section of your report, you must answer the questions provided to you in Part-II.2 of the assignment. PART – III: INVENTORY MANAGEMENT OF SEASONAL GOODS AT DILLARD’S In this section of your report, you must analyze the scenario and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-III. Your write-up will have two elements: analysis and recommendations. PART-III.1: ANALYSIS OF ORDER QUANTITIES In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Tables 2,3, and 4 (see below), •    explain clearly how you computed the values and how Dillard’s managers should interpret the values in these tables. PART – III.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-III.2 of the assignment. Item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand? quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-2. Order quantities and inventory performance with current service level Item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand?quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-3. Order quantities and inventory performance when the newsvendor model is used. INVENTORY PERFORMANCE OF THE MOST PROFITABLE PRODUCT Item #: _________________ Product Description: ____________________ Model     Quantity ordered    Safety stock level    Expected profit A: Newsvendor Model B: Newsvendor Model when price increases by 1% C: Newsvendor model when unit cost decreases by 1% D: Newsvendor model when forecast accuracy (standard deviation) improves (decreases) by 1% Summary: Percentage change in performance metric when compared to the newsvendor model (model A above) Model    % change in Quantity ordered    % change in Safety stock level    % change in Expected profit B: price increases by 1% C: unit cost decreases by 1% D: forecast accuracy (standard deviation) improves (decreases) by 1% Table-4. Effect of changes in price, cost, and forecast accuracy on the inventory performance of the most profitable product PART-IV. REDUCING INVENTORY SHRINKAGE In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided in Part-IV of the assignment. Your write-up will have two elements: analysis and recommendations. PART-IV.1: ANALYSIS OF STORE AUDIT RESULTS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    estimate the total loss for fiscal year 2011, •    prepare Figure 1, •    complete Table 5, •    explain clearly how you computed the values in your Pareto Chart and Table 5 and how Dillard’s managers should interpret the values in the chart and table. PART – IV.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-IV.2 of the assignment. Figure-1. Pareto chart that shows the frequency of shrink incidents and their causes Rank (based on frequency)    Source    Product Type    No. of incidents    Frequency  of incidents as a % of total    Cumulative % of incidents (starting from the top) 1 2 3 4 5 6 7 8 9 10 Table-5. Top ten most common shrink-related incidents at Dillard’s. REFERENCES Include the list of references for outside sources (books, articles, websites,…) here. Make sure you cite each reference in the main text. EXHIBITS All exhibits are provided here.  Any information or analysis that is not “mission critical” to your answers must be presented in an exhibit at the end of your report. Exhibits must be formatted clearly and must be referred from the main body of your report. TEAM CHALLENGE #2 & TEAM CHALLENGE #3 DILLARD’S Inc. - revisited ______________________________________________________________________________ NAMES (in capitals):        _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ ______________________________________________________________________________ PART-I: INTRODUCTION & EXECUTIVE SUMMARY In this section of your report, you must summarize the problems you analyze in this team challenge. This section serves as a short introduction to the rest of the document. Briefly explain what the problems were and how you analyzed them. This section should not exceed 1 page. PART-II: TRANSPORTATION AND LOGISTICS In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-II. Your write-up will have two elements: analysis and recommendations. PART-II.1: ANALYSIS OF EXISTING OPERATIONS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Table-1 below by determining (a) to (m), •    explain clearly how you computed the values in Table-1 and how Dillard’s managers should interpret the values in that table. Distribution center  to shut down    Estimated minimum annual transportation cost for 2011 (using Excel Solver)    Estimated percentage increase in costs None of them    (a)    N/A Mabelvale AR    (b)    (h) Gilbert AZ    (c)    (i) Valdosta GA    (d)    (j) Olathe KS    (e)    (k) Salisbury NC    (f)    (l) Fort Worth TX    (g)    (m) Table-1. Analysis of Dillard’s transportation costs for the fiscal year 2011. Part-II.2: RECOMMENDATIONS In this section of your report, you must answer the questions provided to you in Part-II.2 of the assignment. PART – III: INVENTORY MANAGEMENT OF SEASONAL GOODS AT DILLARD’S In this section of your report, you must analyze the scenario and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-III. Your write-up will have two elements: analysis and recommendations. PART-III.1: ANALYSIS OF ORDER QUANTITIES In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Tables 2,3, and 4 (see below), •    explain clearly how you computed the values and how Dillard’s managers should interpret the values in these tables. PART – III.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-III.2 of the assignment. Item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand? quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-2. Order quantities and inventory performance with current service level Item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand?quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-3. Order quantities and inventory performance when the newsvendor model is used. INVENTORY PERFORMANCE OF THE MOST PROFITABLE PRODUCT Item #: _________________ Product Description: ____________________ Model     Quantity ordered    Safety stock level    Expected profit A: Newsvendor Model B: Newsvendor Model when price increases by 1% C: Newsvendor model when unit cost decreases by 1% D: Newsvendor model when forecast accuracy (standard deviation) improves (decreases) by 1% Summary: Percentage change in performance metric when compared to the newsvendor model (model A above) Model    % change in Quantity ordered    % change in Safety stock level    % change in Expected profit B: price increases by 1% C: unit cost decreases by 1% D: forecast accuracy (standard deviation) improves (decreases) by 1% Table-4. Effect of changes in price, cost, and forecast accuracy on the inventory performance of the most profitable product PART-IV. REDUCING INVENTORY SHRINKAGE In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided in Part-IV of the assignment. Your write-up will have two elements: analysis and recommendations. PART-IV.1: ANALYSIS OF STORE AUDIT RESULTS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    estimate the total loss for fiscal year 2011, •    prepare Figure 1, •    complete Table 5, •    explain clearly how you computed the values in your Pareto Chart and Table 5 and how Dillard’s managers should interpret the values in the chart and table. PART – IV.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-IV.2 of the assignment. Figure-1. Pareto chart that shows the frequency of shrink incidents and their causes Rank (based on frequency)    Source    Product Type    No. of incidents    Frequency  of incidents as a % of total    Cumulative % of incidents (starting from the top) 1 2 3 4 5 6 7 8 9 10 Table-5. Top ten most common shrink-related incidents at Dillard’s. REFERENCES Include the list of references for outside sources (books, articles, websites,…) here. Make sure you cite each reference in the main text. EXHIBITS All exhibits are provided here.  Any information or analysis that is not “mission critical” to your answers must be presented in an exhibit at the end of your report. Exhibits must be formatted clearly and must be referred from the main body of your report. TEAM CHALLENGE #2 & TEAM CHALLENGE #3 DILLARD’S Inc. - revisited ______________________________________________________________________________ NAMES (in capitals):        _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ ______________________________________________________________________________ PART-I: INTRODUCTION & EXECUTIVE SUMMARY In this section of your report, you must summarize the problems you analyze in this team challenge. This section serves as a short introduction to the rest of the document. Briefly explain what the problems were and how you analyzed them. This section should not exceed 1 page. PART-II: TRANSPORTATION AND LOGISTICS In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-II. Your write-up will have two elements: analysis and recommendations. PART-II.1: ANALYSIS OF EXISTING OPERATIONS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Table-1 below by determining (a) to (m), •    explain clearly how you computed the values in Table-1 and how Dillard’s managers should interpret the values in that table. Distribution center  to shut down    Estimated minimum annual transportation cost for 2011 (using Excel Solver)    Estimated percentage increase in costs None of them    (a)    N/A Mabelvale AR    (b)    (h) Gilbert AZ    (c)    (i) Valdosta GA    (d)    (j) Olathe KS    (e)    (k) Salisbury NC    (f)    (l) Fort Worth TX    (g)    (m) Table-1. Analysis of Dillard’s transportation costs for the fiscal year 2011. Part-II.2: RECOMMENDATIONS In this section of your report, you must answer the questions provided to you in Part-II.2 of the assignment. PART – III: INVENTORY MANAGEMENT OF SEASONAL GOODS AT DILLARD’S In this section of your report, you must analyze the scenario and make recommendations to Dillard’s based on the scenario and questions provided to you in Part-III. Your write-up will have two elements: analysis and recommendations. PART-III.1: ANALYSIS OF ORDER QUANTITIES In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    complete Tables 2,3, and 4 (see below), •    explain clearly how you computed the values and how Dillard’s managers should interpret the values in these tables. PART – III.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-III.2 of the assignment. Item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand? quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-2. Order quantities and inventory performance with current service level Item Quantity ordered    Safety stock    Expected profit    Expected lost sales    Expected no. of unsold units    Expected underage cost    Expected overage cost    Expected fill rate    In-stock probability: P(demand?quantity)    Out-of-stock probability: P(demand>quantity) 1 2 3 4 5 6 7 8 9 10 TOTAL                                N/A    N/A    N/A Table-3. Order quantities and inventory performance when the newsvendor model is used. INVENTORY PERFORMANCE OF THE MOST PROFITABLE PRODUCT Item #: _________________ Product Description: ____________________ Model     Quantity ordered    Safety stock level    Expected profit A: Newsvendor Model B: Newsvendor Model when price increases by 1% C: Newsvendor model when unit cost decreases by 1% D: Newsvendor model when forecast accuracy (standard deviation) improves (decreases) by 1% Summary: Percentage change in performance metric when compared to the newsvendor model (model A above) Model    % change in Quantity ordered    % change in Safety stock level    % change in Expected profit B: price increases by 1% C: unit cost decreases by 1% D: forecast accuracy (standard deviation) improves (decreases) by 1% Table-4. Effect of changes in price, cost, and forecast accuracy on the inventory performance of the most profitable product PART-IV. REDUCING INVENTORY SHRINKAGE In this section of your report, you must analyze the situation and make recommendations to Dillard’s based on the scenario and questions provided in Part-IV of the assignment. Your write-up will have two elements: analysis and recommendations. PART-IV.1: ANALYSIS OF STORE AUDIT RESULTS In this section of your report, you must •    briefly introduce the problem Dillard’s has hired you to solve, •    estimate the total loss for fiscal year 2011, •    prepare Figure 1, •    complete Table 5, •    explain clearly how you computed the values in your Pareto Chart and Table 5 and how Dillard’s managers should interpret the values in the chart and table. PART – IV.2: RECOMMENDATIONS In this section of your report, you must answer the questions in Part-IV.2 of the assignment. Figure-1. Pareto chart that shows the frequency of shrink incidents and their causes Rank (based on frequency)    Source    Product Type    No. of incidents    Frequency  of incidents as a % of total    Cumulative % of incidents (starting from the top) 1 2 3 4 5 6 7 8 9 10 Table-5. Top ten most common shrink-related incidents at Dillard’s. REFERENCES Include the list of references for outside sources (books, articles, websites,…) here. Make sure you cite each reference in the main text. EXHIBITS All exhibits are provided here.  Any information or analysis that is not “mission critical” to your answers must be presented in an exhibit at the end of your report. Exhibits must be formatted clearly and must be referred from the main body of your report.