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 if the waitress sues the employer, 1. A company hires a file clerk ...

1. A company hires a file clerk but does not inquire into his criminal history. In fact, he has had several convictions for driving while intoxicated. On a lunch break, he gets dru

Location analysis, explain the series of steps involved and various factor...

explain the series of steps involved and various factor effecting location decion?

Competitor charges for same golf clubs in that market, Gibson Golf Clubs ma...

Gibson Golf Clubs manufactures titanium golf clubs and sells them in retail outlets all over the U.S. and Europe. GGC is revising its current pricing structure. Would the following

Explain process of designing a database, We are agree that the user should ...

We are agree that the user should be involved in the design of the database. Class, how would you go about the process of designing a database? What processes are involved?

Which strategy is assisting in an organisation, Which strategy is assisting...

Which strategy is assisting in an organisation? Organisational flexibility will assist the organisation accomplish short lead times needed while meeting customer demands, assis

Explain moving averages and exponential smoothing, 1. What is quality funct...

1. What is quality function deployment (QFD)? Provide an example of how it can be used. 2. List the five advantages of successful implementation of group technology. 3. Descr

How conduct an analysis of american apparel, Conduct an analysis of America...

Conduct an analysis of American Apparel. Assess American Apparel's vertical integration, global strategy, and diversification. Compare American Apparel's approach to Google's

Explain a formal or informal mutual agreement, Explain a formal or informal...

Explain a formal or informal mutual agreement. - The mutual agreement may be as given below: (a) Union security. (b) Bonus, wages and other benefits. (c) Terms and con

Explain how does radisson hotels worldwide apply capacity, How does Radisso...

How does Radisson Hotels Worldwide apply Capacity and Scheduling, and quality?

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