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

I want a broke down step by step solution, I have looked at your solution a...

I have looked at your solution and I still do not understand how you get the numbers put in for flow time from the information given. I understand how to calculate everything after

Explain the food stamp and fast foods, Case Study- Food Stamp and Fast Food...

Case Study- Food Stamp and Fast Foods 1. What is the the legal issues involved in the expansion of the SNAP program to the fast food business as well as to how these legal issue

Explain what is marketing research, What is Marketing Research? Why do succ...

What is Marketing Research? Why do successful firms conduct marketing research for their products/services? Discuss the six steps in the Marketing Research process and relate to an

Compute the total relevant cost associated with the eoq, The local technolo...

The local technology store WiredIn hired you to manage their inventory, which consists of 2 products configurations, type L and type J. Below are the data for the products. The hol

Explain how it affects the body in a negative way, A good thesis statement ...

A good thesis statement on the subject- Working Overtime: How it affects the Body in a Negative Way

Explain how many units are needed to break, A manufacturing process has a f...

A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labour. How many units are neede

Explain in your opinion are the protections necessary, Identify and discuss...

Identify and discuss each of the warranty protections that apply to the sale of goods under Article 2A of the Uniform Commercial Code (UCC). Provide an example for each that is not

Explain family medical leave act, Bella, a single mother, worked for one of...

Bella, a single mother, worked for one of Casper's Burger King Restaurants, where she had a record of perfect attendance. One Saturday, her three-year old son awoke with a high fev

Find the number the number of meals and the amount of sales, The restaurant...

The restaurant would serve dinner Tuesday through Saturday. Brian has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be mo

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