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 vroom model leadership, Compare and contrast, the three following l...

Compare and contrast, the three following leadership models: Vroom Model leadership, Fiedler`s Contingency Model and Hersey & Blanchard Situational Theory?

Explain diversity practices of your organization, Analyze the diversity pra...

Analyze the diversity practices of your organization to determine if it is engaged in surface-level or deep-level diversity. Provide specific examples to support your response

What liabilities does gm have towards its employees, What responsibility do...

What responsibility does GM have towards its employees? Does GM have the same responsibility to the employees of its suppliers?

Explain hierarchy of managers, 1. What are the common characteristics of al...

1. What are the common characteristics of all companies? Can a manager have operation responsibilities? Explain. What are three characteristics that a manager must have to be succe

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

Process design, Task 1 Read: Chapter 4 of the Core learning material and su...

Task 1 Read: Chapter 4 of the Core learning material and supporting text chapters on Process Design. Task 2 Investigate: Consider the operations of your own organisation (or ano

Explain challenges inherent in maintaining both individual, Please show you...

Please show your work: APA Citation and Reference Materials and Please provide a project example for both the question. 1) You are the civil engineering foreman in charge of a 24-p

Simultaneity of production & consumption of service product, Simultaneity o...

Simultaneity of Production and Consumption of Service Products There is no opportunity to place the service in inventory. This is not always completely, for instance, petrol i

Demand curve for commodity , (1) The following table presents Mary's margi...

(1) The following table presents Mary's marginal utility for each of the four goods she consumes to exhaust her income. The price of Good 1 is $1, the price of Good 2 is $2, the p

Compute model by using the graphical linear pro- gramming, The Apex Televis...

The Apex Television Company has to decide on the number of 27" and 20" sets to be produced at one of its factories. Market research indicates that at most 40 of the 27" sets and 10

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