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

Describe factors affecting morale, Describe factors affecting morale. F...

Describe factors affecting morale. Factors that tend to lower or improve the worker morale are: 1. Job Factors - Nature of job, Fatigue and boredom related with the job,

Explain cutting edge or don''t have a lot of precedents, In what ways do yo...

In what ways do you think that scoping projects that are cutting edge or don't have a lot of precedents is a problem, and how do you think a project manager can address this

Explain a method that enable you to overcome the difficulty, Document three...

Document three types of cost and determine which is the most difficult to control. Support your response and identify a method(s) that would enable you to overcome the difficulty.

Prepare a report about process and the process capability, 1. A company man...

1. A company manufactures 1Kg bags of grout (used in tiling).  The specification is given in grams and is 1002.0 ± 7.5 g.  The following data has arisen in a process investigation.

Explain simple to state and very difficult to execute, The Assignment is at...

The Assignment is at the same time very simple to state and very difficult to execute. It is designed to allow you to use all the tools of strategy and analysis that you have learn

Explain what transmission technique must be implemented, If a network manag...

If a network manager wanted to connect his Ethernet LANs via ATN, what transmission technique must be implemented on a ATM link? a. TCP/IP encapsulation b. LAN emulation c

Describe contingency leadership, Explain contingency leadership and discuss...

Explain contingency leadership and discuss the role of culture in that theory. Must be 4-5 sentences long and have a creditable source cited.

Explain computer and open the database using access, In Doc Sharing, you wi...

In Doc Sharing, you will find an Access database labelled Week 4 Discussion North wind. Save the database to your computer and open the database using Access. Answer the questions

Explain stakeholder analysis, Stakeholder analysis is important in risk ass...

Stakeholder analysis is important in risk assessments for most activities is not important in risk assessments for most activities is usually undertaken at the end of the planning

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