How do you define "inserts" and "deletes"?
Have you looked in the dfsort manual?
Have you searched the forum?
Dfsort has a "Tips & Tricks" manual that describes what I think you want and gives sample jcl, do you need a pointer to that manual?
If you need more specific help, you need to supply more information such as the RECFM and LRECL of each input file, and an example of the records in each input file and what you expect for the output files.