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 should itt have to honor the policy that layoffs, Review the "You B...

Review the "You Be the Judge" case in chapter 9 entitled Demasse v. ITT Corporation. Answer the following questions about this case: Did the emplyee handbook create a contractual

Explain tangible and intangible strategies, There are tangible and intangib...

There are tangible and intangible strategies that organizations can evaluate their system effectiveness on. Based on Tangible value, Revenue increase, Cost decrease---labour, mater

Explain should wang take the quantity discount, Wang Distributors has an an...

Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the uni

Depict a graph of the exponential function, Solve for x: log_10?x=3 5. You'...

Solve for x: log_10?x=3 5. You've earned your degree and have been hired by an established company. You were able to negotiate a beginning salary of $2500 per month with annual 6%

What are programmed and non-programmed decisions, What are programmed and n...

What are programmed and non-programmed decisions? Programmed decisions are which made in accordance with some procedure, rule or habit. Non-Programmed decisions are those which

Customisation - customers needs for a product, Customisation - Customers Ne...

Customisation - Customers Needs For a Product The ability of the operations system to tailor its outputs to meet special requirements of customers. Vision Express has taken a

Explain what''s your opinion about compensation, 1. Does your company's com...

1. Does your company's compensation plans help to attract and retain people with the right skills, knowledge and motivation to help the company succeed? Explain. 2. Is your comp

Explain a project work breakdown structure, Which of the following items be...

Which of the following items best describe a project Work Breakdown Structure (WBS)? A. An organizational chart depicting who will perform project work. B. A schedule depicting w

Explain training programs relate to the company''s business, How do Loews' ...

How do Loews' training programs relate to the company's business strategy?

Explain management often fail to realize the value of hr, Why does senior m...

Why does senior management often fail to realize the value of human assets versus other organizational assets?

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