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 bruce wayne routinely participates in activities, Bruce Wayne routi...

Bruce Wayne routinely participates in activities such as skydiving, rock climbing and bungy jumping. His employer told him to stop the activities or they would cancel his health in

Define manufacturers should feel free to sell private labels, Should Nation...

Should National-Brand Manufacturers Also Supply Private Label Brands? Take a position: Manufacturers should feel free to sell private labels as a source of revenue versus nation

Explain several organizational communication problems, Do some research to ...

Do some research to identify four to six common communication problems that occur in organizations? The text discusses several organizational communication problems. Provide exampl

Political campaign, The Lady with the Plan needs to make campaign T-shirt t...

The Lady with the Plan needs to make campaign T-shirt to fund raise.  She is trying to decide how many to make for the coming political campaign.  During the campaign itself, which

Management, explain the evolution of the subject operation management over ...

explain the evolution of the subject operation management over time

Explain matching supply with demand by cachon/terwiesch, From "Matching Sup...

From "Matching Supply with Demand" - Cachon/Terwiesch (Highway) While driving home for the holidays, you can't seem to get Little's Law out of your mind. You note that your aver

Describe what do the results of the questionnaire suggest, How do you react...

How do you react to conflict? Do you have a typical style as a leader when dealing with a conflict situation? Complete the Conflict Style Questionnaire. What do the results of the

Explain impacted financially should a consumer lawsuit, Numerous laws that ...

Numerous laws that are enacted to protect consumers have been passed and business leaders have evolved to reflect this focus on consumer safety. Select one of the laws in Appendix

Would this need cause you to turn down this franchise, The franchise fee is...

The franchise fee is %u201Cthe one-time payment made to become a franchisee%u201D (Hatten, 2009, p. 142). Hatten also stated that %u201Csome agreements require you to have a percen

Describe ethical to reduce the number of employees, 1. Based on GM's ...

1. Based on GM's current condition, do you think it is ethical to reduce the number of employees? Why or why not?

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