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 business buying decision processes, Explain the eight general strat...

Explain the eight general strategies in the business buying decision processes.

OR, Ask Managers, as decision makers can purchase computer software to solv...

Ask Managers, as decision makers can purchase computer software to solve specific Operations Research (OR) formulations and as such it is not important for them to learn the OR tec

Explain how is crisis leadership different from leading, How is crisis lead...

How is crisis leadership different from leading under normal circumstances? If leaders wanted to fine-tune their crisis leadership styles, how would you suggest they practice witho

Explain cross-cultural repatriation, Preparing employees to work across nat...

Preparing employees to work across national and cultural boundaries is known as: Answer (1) cross-cultural repatriation. (2) Cross-cultural preparation. (3) Culture shock. (4) Reve

Factors influencing plant layout, Factors Influencing Plant Layout While...

Factors Influencing Plant Layout While choosing the layout for a factory the following factors should be taken into consideration: Management Policy: Management has to de

Explain increased rigidity in organizational culture, According to the expe...

According to the experts, the 2020 organizations will possess one of the following characteristics: a. Heavily analytical approaches to problem-solving b. Increased rigidity in org

Define what behavioural predictions might you make, What behavioural predic...

What behavioural predictions might you make if you know that an employee had an external locus of control? If an employee had a high need for achievement? If an employee had a low

Explain what is the critical path, Shirley Hopkins is developing a problem ...

Shirley Hopkins is developing a problem in leadership training for middle-level managers. Shirley has listed a number of activities that must be completed before a training program

Why it is vital government to regulate businesses operating, • Explain at l...

• Explain at least two ways in which poor cost management could negatively impact a business. Provide support for your rationale. • Discuss three reasons why it is important for

Explain the essence of project management is risk management, Consider the ...

Consider the following statement: "The essence of project management is risk management." What does it mean in terms of completing a project successfully? Support your response wit

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