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 how survey have been more useful, 1. Using a cause and effect diagr...

1. Using a cause and effect diagram (Fish-bone chart), Scatter Diagram, flowchart or Statistical Process control chart, analyze the data and present conclusions. 2. How could th

Resource allocation and Contingency planning, What are those topics all abo...

What are those topics all about? Can you give me a summary of that in a clear and understandable explanation. Thank you so much!

Objectionable about psychological tests preemployment screen, Utilitarians ...

Utilitarians would not find anything inherently objectionable about psychological tests as long as the interests of all parties were taken into account and given equal consideratio

Define the important feature of collective bargaining, Define the important...

Define the important feature of collective bargaining. The important feature of collective bargaining is give and take.

Evidenced predictive capabilities of a leader, Question 1: Traits theor...

Question 1: Traits theories are not sufficient for explaining Leadership! i. Give an account of the other complementary Contingency theories or parts of the theories that d

What are the advantages of the chase demand strategies, What are the advant...

What are the advantages of the chase demand strategies? The advantages of the chase demand strategies are as illustrated below: a. Flexible utilisation of resources for inst

Describe what the customer''s expectations, Explain what the customer's exp...

Explain what the customer's expectations are concerning the salesperson's attitude toward competition

Explain the key factors in effective project control, Identify and describe...

Identify and describe the key factor(s) in effective project control.

What approaches for organization to improve communications, It seems common...

It seems common in many of todays workplaces that people dont actually talk to one another frequently. We rely on e-mail, or the even less rich communication channel of text messag

Explain intrinsic motivation for southwest employees, 1. What is the organi...

1. What is the organizational culture of Southwest Airlines like? How does it affect the way the employees behave? 2. What are some potential sources of intrinsic motivation for

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