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

What is benchmark for future comparison, Cunningham Performance Auto, Inc.,...

Cunningham Performance Auto, Inc., modifies 375 autos per year. The manager, Peter Cunningham, is interested in obtaining a measure of overall performance. He has asked you to prov

Calculate the tracking signal, Sales of music stands at Johnny Ho music sto...

Sales of music stands at Johnny Ho music store in Columbus, Ohio, over the past 10 weeks are shown in the table below. a) Forecast demand for each week, including week 10, using

What are advantages of using multiple sourcing strategies, What are the adv...

What are the advantages of using multiple sourcing strategies? Advantages of using multiple sourcing: a. May assist negotiate and drive down prices while more suppliers e

Explain implement each function of management, Can someone PLEASE help get ...

Can someone PLEASE help get me started... Theories of management originated in the early 1900's. They have influenced how we view management today. By Wednesday, February 20, 2013,

Explain how to do aon in excel 2010, Does anyone know how to do aon in Exce...

Does anyone know how to do aon in Excel 2010 and if so can they contact me and wlk me through it sso that I can understand it

Explain the role of the board of directors for a corporation, What is the r...

What is the role of the Board of directors for a corporation

Analytical estimating, Analytical Estimating This technique  of work m...

Analytical Estimating This technique  of work measurement  is used  to determine the  time  values for jobs  having  long and  non repetitive  operations. The time  values  ar

How employer pay for employee benefits, 1. Why would the government not tax...

1. Why would the government not tax us for the Employee Benefits we receive? 2. As a percent of payroll, how much does your employer pay for Employee Benefits? 3. Explain the

Explain development of the germ theory of disease, In the 19th century hosp...

In the 19th century hospitals had notorious reputations questionable places to visit, risky places to stay. What advances changed all this? a.development of the germ theory of d

What is horizontal integration, Horizontal integration has benefits to the ...

Horizontal integration has benefits to the firms involved. Consider the consolidation in the vent-promotion business when Live Nation bought Ticketmaster in 2010. List some specifi

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