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

Describe the areas needing improvement as a communicator, • From the scenar...

• From the scenarios, we see that Chris and Erica have different communication styles that could potentially have a negative impact on the business. Suggest at least two strategies

Graphical method of solution for linear programming problems, Question: The...

Question: The graphical method of solution for linear programming problems is an effective means for solving a linear programming problem's six decision variables and eight constra

Line balancing, what do you understand by line balancing?what happens if ba...

what do you understand by line balancing?what happens if balance does not exist?

Explain small proportion of unionized employees, Why would it be harder for...

Why would it be harder for heavily unionized organizations to settle on their bargaining targets than for those with a small proportion of unionized employees?

Explain business resilience case example cvp france, Which behaviours, thin...

Which behaviours, thinking approaches, emotional stances, decisions, and business management actions can be found in the two readings that pertain to adaptability, resilience, and/

Explain creation of a microsoft project file, Creation of a Microsoft Proje...

Creation of a Microsoft Project File Follow the instructions below to create a small project file to submit to your instructor. Instructions: Load Microsoft Office Project 2007 "tr

Explain project manager is normally directly accountable, The project manag...

The project manager is normally directly accountable for the project result, schedule and budget.

Explain the ohio-based company is covered by the nlra, The Ohio-based compa...

The Ohio-based company is covered by the NLRA. The CEO has heard rumblings that the employees may not be satisfied and are looking for representation. The CEO asked you, "If a unio

Model of service quality - customer satisfaction, Model of Service Quality ...

Model of Service Quality - Customer Satisfaction Gap 1  Occurs due to management's lack of a clear understanding about how customers determine their expectations on the b

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