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 deprivation of food, Which of the following independent variables a...

Which of the following independent variables are appropriate for a quasi-experimental design and why? 1. Blood type, 2. Reading group, 3. Level of abuse, 4. Math strategy, 5. Depri

Service blueprinting - process design, Service Blueprinting - Process Desig...

Service Blueprinting - Process Design Most of the recording techniques described so far had their origins in the heyday of scientific management. Service blueprinting is much

Explain statistical differences between men and women, What rule of thumb o...

What rule of thumb or guidelines would you recommend for deciding whether statistical differences between men and women, or non-minorities and minorities, reflect discrimination oc

Explain principles of delegation, Explain principles of delegation The...

Explain principles of delegation The Principles of Delegation are as follows:- (i) Parity in between responsibility and authority - There must be complete parity between

Explain how od interventions need to be adapted, Describe how OD interventi...

Describe how OD interventions need to be adapted to fit different cultural contexts.

Define conditions which exist globally that are contributing, Please answer...

Please answer both questions fully to have points awarded, Thanks! Decreasing the Incidence of CVD" Please respond to the following: 1. Propose the steps that might be taken

Explain lp production- mix situation, The Electro comp Corporation manufact...

The Electro comp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process fo each is similar in that both require a certain amount of

Supply chain operation, Please diagram a supply chain.  I prefer that you d...

Please diagram a supply chain.  I prefer that you diagram the supply chain of your company.  However, some of you may wish to select another supply chain with which you are familia

Explain why are her ideas appreciated more today, Why do you think Mary par...

Why do you think Mary parker Follett's ideas tended to be popular with business people of her day but were ignored by management scholars? Why are her ideas appreciated more today?

Explain develop a time-phased structure, Heather Adams, production manager ...

Heather Adams, production manager for a Colorado exercise equipment, needs to schedule an order for 50 Ultimate Steppers, which are to be shipped in week 8. Subscripts indicate qua

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