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 risk prevention strategies, Risk prevention strategies should inclu...

Risk prevention strategies should include less detailed planning training static designs and traditional systems all of the above none of the above

Find intermediate calculations to 3 decimal places, travel on Mountain Airl...

travel on Mountain Airlines for the past 18 weeks was: Week Passengers Week Passengers 1 402 10 440 2 410 11 446 3 420 12 451 4 415 13 455 5 412 14 462 6 414 15 466 7 424 16 474 8

Explain what are america''s and today''s workers, What are America's and to...

What are America's and today's workers view of the labor unions?

How did the corporation performs in the return on investment, How did the c...

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

Explain appellate jurisdication, Stan Garner resides in illinois and promot...

Stan Garner resides in illinois and promotes boxing matches for Supersports, INC. an Illinois corporation. Garner created the conect of "ages" promotion- a three fight series of bo

Compute labor productivity change, Eric Johnson makes billiard balls in his...

Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound interest in efficiency. Eric is interested in determining the prod

Tree diagram of activity sampling, Tree Diagram of Activity Sampling A...

Tree Diagram of Activity Sampling Activity sampling is not restricted to the binary condition (working/not working); if the sample is large, additional useful information may

Explain sophicated technology and industry benchmarking, Health care consta...

Health care constant changes are a result of continuing trends in regulatio, policy, patient and provider advocacy efforts, as well as increasingly sophicated technology and indust

Define a solid business strategy includes, 1.__?__________ are the basic un...

1.__?__________ are the basic unit of analysis and the focus of nonmarket action 2. The market environment of business includes___________.? 3. Firms typically deal with nonm

Explain cross-cultural repatriation, Preparing employees to work across nat...

Preparing employees to work across national and cultural boundaries is known as: Answer (1) cross-cultural repatriation. (2) Cross-cultural preparation. (3) Culture shock. (4) Reve

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