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

Confidence interval of the population mean life, A sample of 36 "AA" Alkali...

A sample of 36 "AA" Alkaline batteries has a mean life of 6 months. The standard deviation of the population is known to be 3 months. Find the 95% confidence interval of the popual

Explain dynamically continuous innovation, The terms continuous innovation,...

The terms continuous innovation, dynamically continuous innovation, and discontinuous innovation are classifications based on generated sales. production technology. degre

Production and Operation Management, What do you understand by “line balanc...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Define the functional department integration, Q. Define the functional depa...

Q. Define the functional department integration in information system. All functional departments are integrated within one holistic information system. Well integrating manufa

Three methods of system classification, 1. Name three methods of system cla...

1. Name three methods of system classification and typical examples.  Answer: 1. Volume/variety; 2. customer interaction/labour intensity; 3. Boulding's classification.

Explain eliminating the scrap, An operation has a 10% scrap rate. As a resu...

An operation has a 10% scrap rate. As a result, 72 pieces per hour are produced. What is the potential increase in labour productivity that could be achieved by eliminating the scr

Linear programming, classification of linear programming on the basis of st...

classification of linear programming on the basis of structure

Describe presence of an outside threat correlates, Some people argue that t...

Some people argue that the presence of an outside threat correlates with high degree of team cohesion. Would you agree or disagree?

Line balancing of product layouts, Line Balancing of Product Layouts ...

Line Balancing of Product Layouts A major consideration in the design of product layouts is that of bottlenecks; just as the strength of a chain is determined by its weakest

Japanese firms used the which concept, Q All of the following are responsib...

Q All of the following are responsibilities of operations managers except Question options: 1) acquiring financial resources 2) managing inventories 3) planning production 4) sched

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