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

#facility manger, to find a medium that works across 4 other facility sites...

to find a medium that works across 4 other facility sites on how to properly and effectively maintain facility design, to all model after eachother

Objectives of production control, Objectives of Production Control An...

Objectives of Production Control An enterprise wishes to obtain the following objectives through production control: 1.Making necessary arrangement for the production of goo

Explain industrial disputes act, Explain Industrial Disputes Act. The I...

Explain Industrial Disputes Act. The Industrial Disputes Act intend at settling disputes between Employer and Employees.

Explain what is an interim plan, Answer the following questions: 1) ...

Answer the following questions: 1) What is the difference between a task dependency and a task constraint? 2) Give a real-world situation when you might used the foll

Define construct a stem-and-leaf display, Use the data in Exhibit 16-5 to c...

Use the data in Exhibit 16-5 to construct a stem-and-leaf display

How is the chase demand strategy opposite of level capacity, How is the cha...

How is the chase demand strategy opposite of level capacity? Chase demand strategies: Chase demand strategies are the totally opposite of level capacity in which the orga

Process design in operations managment, when asked to critically discuss ma...

when asked to critically discuss main factors that influence process design within a familiar organisation, does this mean a breakdown of the company''s design process or an analys

Auto Parts store manager, Needs to know how to run office affairs and to ha...

Needs to know how to run office affairs and to handle the paperwork of all customers as they come in each day, and take care of the work load of the employees as to setting up the

Define evaluation of the merits or reliability of the source, Share a sourc...

Share a source you are planning to use in writing your Resource Scheduling Methods Analysis Paper. Provide an APA citation for the source. Provide a brief summary of the source, an

Explain what are the optimal solution values of x and y, Suppose the firm i...

Suppose the firm in this example considers a second product that has a unit profit of $5 and requires 2 hours for each unit produced. Assume total production capacity remains 40. U

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