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 positive organizational behaviours, How might incentives stimulate ...

How might incentives stimulate positive organizational behaviours? Discuss the place of rewards and punishments for organizational members. What is it important to know? What incen

Explain how should you respond to the reporter, A manager at an architectur...

A manager at an architectural firm receives a call from a local newspaper. The reporter wonders how the firm wishes to respond to calls from two of its employees alleging racial di

Organizational goals, outline major benefits of organizational goals and d...

outline major benefits of organizational goals and describe the situation in which have observe the benefiys

Routing procedure, Routing Procedure For a new product or part the rout...

Routing Procedure For a new product or part the routing procedure consists of seven principle steps: 1.The first step is to analyze the product or articles and fabricate int

Describe scenarios and contingency plans, Ok need a little help in arrangin...

Ok need a little help in arranging these in the right order 1-5 Select measures and targets Set strategic goals Hold operational reviews Implement single-use plan Define scenarios

MBA, Q3. What do you understand by “line balancing”? What happens if balanc...

Q3. What do you understand by “line balancing”? What happens if balance doesn’t exist?

Transportation, I have a transportation problem which is given below: The ...

I have a transportation problem which is given below: The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The

Describe the organizational design, 1) Define and discuss the advantages an...

1) Define and discuss the advantages and disadvantages of functional and matrix structures. 2) Define and discuss the advantages and disadvantages of cross-functional teams.

Explain should itt have to honor the policy that layoffs, Review the "You B...

Review the "You Be the Judge" case in chapter 9 entitled Demasse v. ITT Corporation. Answer the following questions about this case: Did the emplyee handbook create a contractual

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