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 human resource management contribution, How can human resource mana...

How can human resource management contribute to a company's success?

How break even analysis helps in solving the problems, How Break even Analy...

How Break even Analysis helps in solving the problems. Break even Analysis assists solving the problems of following:  (a) What volume of sales will be necessary to cover?

Describe collection of finite nonempty sets, 1.52. Let S1, S2, . . . , Sk b...

1.52. Let S1, S2, . . . , Sk be a collection of finite, nonempty sets. This collection has an SDR if and only if for every t %u2208 {1, . . . , k}, the union of any t of these sets

Explain what is customer relationship management, What is Customer Relation...

What is Customer Relationship Management - CRM? Describe the four-step framework for one-to-one marketing that can be adapted to CRM marketing? Provide at least one or two examples

Define factors that need to be considered in media selection, There are thr...

There are three factors that need to be considered in media selection and budgeting. These include A) Audience reach, availability of the product, no competition B) Audience

Describe who will involve your management team, Describe who will comprise ...

Describe who will comprise your management team and what talents or skills each of the teams members will bring to the organization. Include a simple organizational chart. How do I

Explain operational management strategy for a company, Identify how the cha...

Identify how the changes in the internal envirobnebt affect the Operational Management strategy for a company. For example, what impact are the following factors likely to have on

Comparison of market based and resource-based approach, Comparison of Marke...

Comparison of Market Based and Resource-Based Approach to Operations Strategy Since Porter's assertions, there has been a recognition that traditional strategic management has

Explain project management best practice, Give five potential underlying re...

Give five potential underlying reasons why projects commonly fail. For each potential failure point that you name, identify at least one project management best practice or techniq

Explain why do rbocs encounter more competition, Why do RBOCs encounter mor...

Why do RBOCs encounter more competition in urban areas than in rural areas? (Regional Bell Operating Companies) a. because RBOCs are more entrenched in urgan areas b. because

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