Case Study, Operation Management

Assignment Help:
After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his business and decided to venture into Road transportation business between Chennai and Mumbai and Mumbai and Delhi as he felt that he could do well on this line. However before taking a final decision he hires your Management Consultant firm formed by yourself. He has requested you to work out the Price to quote his clients for these two routes considering the costs involved. He expects to earn a minimum profit of Rs 1000 per day per truck after meeting all expenses. Your analysis of market conditions tell you the following :

Vehicle cost Rs 7 lacs Depreciation 15 % Maintenance costs per day Rs 150 Drivers monthly Salary Rs 5000 : Attendants monthly salary Rs 3000 . Misc expenses Rs 200 per day. Driver allowance is Rs 125 per day and attendant gets Rs 75. Diesel cost per liter is Rs 25 and the vehicle gives an average mileage of 4 km to a liter. The Financial institutions offer loans at 10 % interest pa, which Ramjee has been negotiating. It has been observed that on an average the vehicle covers 400 km per day. The distance between Mumbai to Delhi is 1500 km and Mumbai to Chennai is 1350 km. The driver gets rest day in Mumbai only for one day after they return from any trip.

Related Discussions:- Case Study

Energy use in multiplicative seasonal factors, An Electric Company estimate...

An Electric Company estimates its demand trend line (in millions of kilowatt hours) to be D = 76 + 0.55 Q, where Q refers to the sequential quarter number and Q=1 for winter 2000.

Advantages, what is an advantages of operations management applied to apple...

what is an advantages of operations management applied to apple during the manufacturing of the laser equipment machine?

Explain other type of business planning, Is Logistics planning more importa...

Is Logistics planning more important than any other type of business planning? WHY or Why not?

Assignment 2000 words, Assignment EITHER A. Practical application of concep...

Assignment EITHER A. Practical application of concepts in a local organisation • You are required to analyse and evaluate a key aspect of operations management covered in this subj

Describe all the limitations of matrix organization, Describe all the limit...

Describe all the limitations of matrix organization. Limitations of matrix organization (i) Matrix organization violates the principle of unity of command when a person

Explain supply base innovation and risk management, Why are supply base inn...

Why are supply base innovation and risk management two future areas that will consume more of the supply manager's day?

Explain phases in a project life cycle, An important factor used to determi...

An important factor used to determine the phases in a project life cycle are the control needs of the organization(s) involved in the project. True or False

Describe the ethics of continuing to do business, Assume you are a manager ...

Assume you are a manager of a large heavy equipment manufacturing company. Your company currently outsources the manufacturing of a specialized piece of equipment to a firm in anot

Briefly define the situational influences on organizational, Briefly explai...

Briefly explain the situational influences on organizational design

Determine the standard time, An 8 hours work measurement  study  in a plant...

An 8 hours work measurement  study  in a plant reveals the following : Units  produced= 320 nos. Idle  time = 15%  performance rating-= 120% . allowances  = 12% of normal  time. De

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd