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

Location strategy, Location Strategy It is difficult  to set  down ru...

Location Strategy It is difficult  to set  down rules whereby the problem  of facilities  location  can be  programmed but  there  are a number of factors which  should be  c

Explain direct marketing association website, On the Direct Marketing Assoc...

On the Direct Marketing Association website, what is interesting, how can companies use the website, what information is surprising and why?

Explain managing consumer trust, Why does the Baltzan text draw a dist...

Why does the Baltzan text draw a distinction between e-business and e-commerce? • The Baltzan text lists four challenges for Web-based e-business (pp. 103 - 104). See

What leadership is give answer in thirty seconds, If someone asked you to t...

If someone asked you to tell them what leadership is, and you only had thirty seconds to answer, what would you say?

Explain smartphones are more likely to be used more, Considering research: ...

Considering research: Smartphones are more likely to be used more by whites or Hispanic

Explain average age of the us workforce is increasing, The average age of t...

The average age of the US workforce is increasing and will continue for several years.

How to avoid the race condition, To avoid the race condition, the number of...

To avoid the race condition, the number of processes that may be simultaneously inside their critical section is A. 8 B. 1 C. 16 D. 0 E. None of the above

Explain logistical and visual elements, Like other large airlines, Global A...

Like other large airlines, Global Airlines has a points-based incentive program. Customers who join Global's FreeMiles program earn points by purchasing tickets from Global or by u

Explain methods companies use to train their employees, 1. What is the sequ...

1. What is the sequence of steps that should occur before you are hired for a full-time position ? 2. Describe the types of methods companies use to train their employees. 3.

Define learning managerial problem solving help, In essay form how will lea...

In essay form how will learning managerial problem solving help you later in life in you job

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