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

Performance prism - performance and productivity measures, Performance Pris...

Performance Prism - Performance and Productivity Measures Neely and Adams (2000) argue that in their recent research managers and academics highlight the need for a fresh pers

Which charts is used to monitor the total number of defects, Which of the f...

Which of the following charts is used to monitor the total number of defects per unit when a constant subgroup size is employed? s-chart c-chart p-chart u-chart

How maximize total advertising revenue, A local television station plans to...

A local television station plans to drop four Friday evening programs at the end of the season. Steve Botuchis, the station manager, developed a list of six potential replacement p

Explain operations information systems, Distinguish between management info...

Distinguish between management information systems and operations information systems

Explain what additional steps should the quality assurance, A quality analy...

A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that the process standard deviation is two ounces. Each

Product and Service Design, What are some of the factors that cause organiz...

What are some of the factors that cause organizations to redesign their products or services?

Define the rationale behind the recommendations you offered, • Recommend st...

• Recommend strategic alternatives for the company you researched. Explain the rationale behind the recommendations you offered. • Analyze the different types of strategies disc

Explain several influencing factors, Forecasts for groups of items tend to ...

Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.

Investment Management Assignment, Prepare an in-depth report recommending t...

Prepare an in-depth report recommending the appropriate investment of AUD$3 million for a five year investment period for a particular investment client. The investment portfolio i

Explain objective is to maximize expected profit, (Teddy Bower Boots) To en...

(Teddy Bower Boots) To ensure a full line of outdoor clothing and accessories, the marketing department at Teddy Bower insists that they also sell waterproof hunting boots. Unfortu

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