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 veronique to improve the process, What suggestions would you make t...

What suggestions would you make to Veronique to improve the process?

Operation Management, Six Operators are to be assigned to five jobs with th...

Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given 10 marks in the matrix below. Determine the optimal assignment. Which operator will have no a

Changes in employment by sector - operations function, (1) Firstly, conside...

(1) Firstly, consider the changes in employment by sector over the period charted in the figure (1850 - 2000). What factors do you think contributed to the reduction in employment

Innovative ideas for management position, These are questions I were asked,...

These are questions I were asked, i'm assuming you could understand the question based on the way I worded the answers. It's suppose to be a paragraph but i'm not exactly sure what

Explain marketing to stakeholders and stockholders, What is the value of ma...

What is the value of marketing to the consumer, the stakeholder and stockholder and a. the value of your place on marketing b. the value of marketing to customers and consumers c.

Explain the working of employees in flexible organisations, Explain the wor...

Explain the working of employees in flexible organisations. Working of employees in flexible organisations: • Production workers may be needed to take on indirect tasks as l

Design of products and services, the purpose of the design activity in comp...

the purpose of the design activity in companies is to come up with products/services which willsatisfy the needs of customers/clients. which one of the fololowing statements is inc

Explain collective bargaining, Collective bargaining replaces management's ...

Collective bargaining replaces management's traditional authority to unilaterally establish terms and conditions of employment with bilateral negotiations. How has the collective b

Explain division of work (or labour), Explain Division of Work (or Labour)....

Explain Division of Work (or Labour). It is a famous principle of Economics, invented through  Adam Smith  who was the traditional economist. Fayol had advocated Division of wo

Explain testing your business perspective of a typical ie, Page maximum req...

Page maximum required for this question. This is testing your business perspective of a typical IE problem. Given that you have a starting standard time for a job of ninety (90) mi

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