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 tool like this one help identify the target market, Complete the fo...

Complete the following steps for this assignment: 1. Select the following link to visit a Web site that is an online demographic tool used to help establish demographics about c

Explain interactive design mean, What does the concept of interactive desig...

What does the concept of interactive design mean for a service such as the adventure playground described here?

Explain what is the expected return of, Assume that you have $165,00 invest...

Assume that you have $165,00 invested in stock that is returning 11.50%,$85,000 invested in a stock is returning 22.75% and $235,000 invested in a stock that is returning 10.25%. W

Upper and lower limits, The upper and lower limits for diving ring diameter...

The upper and lower limits for diving ring diameters made by John''s Swimming are 40 and 39 cm. John took 11 samples with the following average diameters (39, 39.1, 39.2, 38.9, 39.

Explain mcdonald''s prospects of success against competitor, Choose at leas...

Choose at least one of McDonald's competitors and discuss its position relative to McDonald's. Comment on McDonald's prospects of success against this competitor.

What is myers-briggs type indicator, Many of us have taken assessments in t...

Many of us have taken assessments in the past, such as the ASVAB (Armed Services Vocational Aptitude Battery) or MBTI (Myers-Briggs Type Indicator); the latter is described in your

Explain growth and globalization strategies, Given Pitney Bowes' growth and...

Given Pitney Bowes' growth and globalization strategies, analyze the forces for and against maintaining an organizational culture that supports diversity as a business imperative

Tangibles - customer satisfaction and service quality, Tangibles - Customer...

Tangibles - Customer Satisfaction and Service Quality Include the physical evidence of the service: physical facilities, appearance of personnel, tools or equipment used to pr

Explain why do reporting systems increase the risk, Why do reporting system...

Why do reporting systems increase the risk of semantic security problems?

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