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 instituting formal performance appraisal, What are some prerequisit...

What are some prerequisite conditions that must exist before instituting formal performance appraisal?

Describe several advantages of linear programming, Discuss several advantag...

Discuss several advantages of linear programming; clearly explain the reasons for your choices.

Explain the effective rate of interest for an investment, Find the effectiv...

Find the effective rate of interest for an investment that earns 5 (1/2) % per year, compounded continuously

Explain inventory decreases and inventory increases, What happens to invent...

What happens to inventory as the number of kanban cards increases? Inventory decreases Inventory increases Inventory remains the same The number of kanban cards has no

Compute the average number of customers waiting at lhs, During busy periods...

During busy periods, a new customer walks into LHS every 15 mins. (with a standard deviation of 15 mins). At SHC, a customer walks in every hour (with a standard deviation of 1 hou

Describe what are the different types of strategies, What are the different...

What are the different types of strategies? What are the differences among these strategies? How do you determine which type of strategy is most appropriate for your organization?

Explain leading a diverse workforce, 1. What lessons about leading people a...

1. What lessons about leading people and managing organizations does Zappos and its CEO, Tony Hsieh, provide? Explain your conclusions. 2. Each of the management challenges%u201

Explain what is the makespan and machine idle time, Sequence the jobs shown...

Sequence the jobs shown below by using the Gantt chart. Assume that the move time between machines in one hour. Sequence the jobs in priority order 1,2,3,4. Job Work Center/Machine

A Make or Buy Analysis, A Make or Buy Analysis Managers at Wagner Fabrica...

A Make or Buy Analysis Managers at Wagner Fabricating Company are reviewing the economic feasibility of manufacturing a part that it currently purchases from a supplier. Forecas

Calculate seasonal index for summer, The number of visitors at a theme park...

The number of visitors at a theme park by season and year has been recorded and is given in the following table- Quarter 2003 2004 2005 2006 Winter 48 51 43 18 Spring 55

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