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

North west corner rule, advantages and disadvantages of north west corner r...

advantages and disadvantages of north west corner rule

Explain participatory management style, Leslie Igles is being sent to Irela...

Leslie Igles is being sent to Ireland as the new manager of a local subsidiary of a U.S. firm. She has a participatory management style and is known for her ability to relate to th

Access - customer satisfaction and service quality, Access - Customer Satis...

Access - Customer Satisfaction and Service Quality Involves approachability and ease of contact. It means: the service is easily accessible by telephone (lines are not busy an

Ramjee Somjee Dutt, After working for 30 years, Ramjee Somjee Dutt opted fo...

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 busine

Operations scheduling in job shop type production, Operations Scheduling in...

Operations Scheduling in job shop type production Operations scheduling is the organizing function of an operations manager. This function of the operation manager is most impor

How to use the financial ratios presented, Which of the three warehouse clu...

Which of the three warehouse club rivals has been the strongest financial performer in recent years? Support your answer with calculations based on the data in case Exhibits 2,6, a

Line balancing, what do you understand by line balancing

what do you understand by line balancing

International, what factors have contributed to the importance of internati...

what factors have contributed to the importance of international markets on operations management

Find what is the maximum profit, The Outdoor Furniture Corporation manufact...

The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: labor and redwood. A linear pro

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