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

Explain why internal recruitment is the most effective way, Question 1: ...

Question 1: "Internal recruitment is the most effective way to obtain a skilled and knowledgeable workforce". Critically evaluate this statement. Question 2: Classroom

Define what is a principle within a health care organization, What is a pri...

What is a principle within a health care organization?

Explain difference between two population means, In estimating the differen...

In estimating the difference between two population means, if a 95 percent confidence interval includes zero, then we can conclude that there is a 95 percent chance that the differ

Ethical statements for mass-marketed, To be consistent with its stated valu...

To be consistent with its stated values of improving the health of its consumers, General Mills introduced ethics into the ______ phase of its marketing strategy for its mass-marke

Explain what are the coordinates of the central location, A small rural cou...

A small rural county has experienced unprecedented growth over the past 6 years, and as a result, the local school district built the new 500-student North Park Elementary School.

Scheduling in mass continuous, Scheduling In Mass Continuous Schedul...

Scheduling In Mass Continuous Scheduling In Mass Continuous and Project Type Production System The scheduling aspects mentioned so far have been concerned with job shop

Explain line and staff organisation, Explain Line and Staff Organisation. ...

Explain Line and Staff Organisation. Line and Staff Organisation: When the industry grew in size and complicated, the line executives could not perform appropriately all othe

Location, What are potential advantages and disadvantage of locating a prod...

What are potential advantages and disadvantage of locating a production facility in foreign country instead of using domestic location?

Performance measurement in organisations, Performance Measurement 1. A...

Performance Measurement 1. An effective performance measurement framework rarely is derived from one single approach.  2. Each of the methods outlined comes with its own un

Describe the pitfalls on this strategy, Evaluate panera Bread's strategy an...

Evaluate panera Bread's strategy and its effectiveness with executing the strategy within the competitive fast-causal restaurant market place . Discuss the pitfalls on this strateg

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