EXHIBITS

TEAM CHALLENGE #2 & TEAM CHALLENGE #3 DILLARD?S Inc. ? revisited______________________________________________________________________________NAMES (in capitals): _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________PART-I: INTRODUCTION & EXECUTIVE SUMMARYIn 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 LOGISTICSIn 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 OPERATIONSIn 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: RECOMMENDATIONSIn 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?SIn 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 QUANTITIESIn 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: RECOMMENDATIONSIn 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 levelitem 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 productPART-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 RESULTSIn 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: RECOMMENDATIONSIn 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 causesRank (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.REFERENCESInclude the list of references for outside sources (books, articles, websites,?) here.Make sure you cite each reference in the main text.EXHIBITSAll 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 SUMMARYIn 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 LOGISTICSIn 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 OPERATIONSIn 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: RECOMMENDATIONSIn 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?SIn 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 QUANTITIESIn 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: RECOMMENDATIONSIn 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 levelItem 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 productPART-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 RESULTSIn 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: RECOMMENDATIONSIn 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 causesRank (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.REFERENCESInclude the list of references for outside sources (books, articles, websites,?) here.Make sure you cite each reference in the main text.EXHIBITSAll 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 SUMMARYIn 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 LOGISTICSIn 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 OPERATIONSIn 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: RECOMMENDATIONSIn 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?SIn 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 QUANTITIESIn 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: RECOMMENDATIONSIn 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 levelItem 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 productPART-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 RESULTSIn 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: RECOMMENDATIONSIn 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 causesRank (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.REFERENCESInclude the list of references for outside sources (books, articles, websites,?) here.Make sure you cite each reference in the main text.EXHIBITSAll 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 SUMMARYIn 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 LOGISTICSIn 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 OPERATIONSIn 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: RECOMMENDATIONSIn 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?SIn 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 QUANTITIESIn 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: RECOMMENDATIONSIn 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 levelItem 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 productPART-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 RESULTSIn 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: RECOMMENDATIONSIn 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 causesRank (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.REFERENCESInclude the list of references for outside sources (books, articles, websites,?) here.Make sure you cite each reference in the main text.EXHIBITSAll 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.:

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