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

Presentation of performance measures - operations strategy, Presentation of...

Presentation of Performance Measures - Operations Strategy A useful way of presenting performance measures is to sketch them in a polar representation with each line represent

What are the possible to use a ti-84 calculator, To test H0: p=.35 versus h...

To test H0: p=.35 versus h1:p Please let me know if it is possible to use a ti-84 calculator ? = Power =

Explain what is your understanding of the term brand equity, What is your u...

What is your understanding of the term: Brand Equity?

Breadth of supplier base - many or few suppliers, Breadth of Supplier Base ...

Breadth of Supplier Base - Many or Few Suppliers The traditional approach to supplier selection is to prepare a tender document and request a quotation from a range of suitabl

Explain how many units are needed to break, A manufacturing process has a f...

A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labour. How many units are neede

Find what is the labour productivity per dollar, Klein Karpet cleaned 65 ru...

Klein Karpet cleaned 65 rungs in October, consuming the following resources: Labour: 520 hours at$13 per hour Solvent: 100 gallons at $5 per gallon Machine rental: 20 days at $50 p

Explain sales-force composite, List the specific weaknesses of each of thes...

List the specific weaknesses of each of these approaches to developing a forecast: a. Consumer surveys. b. Sales-force composite

Explain what ways does this benefit a project, Some companies choose not to...

Some companies choose not to tie resources to their projects. In what ways does this benefit a project? In what ways does this hinder a project?

Airbus, 1)?An analysis of type of operations carried out and operating proc...

1)?An analysis of type of operations carried out and operating processes (i.e., project, batch, mass, professional service, service shop,?mass service, etc.) 2)?An identification

Explain which path is the critical path, Given the information below: 1....

Given the information below: 1. Construct a network using the AON (Activity on Network method) like we did in class. See problem 3.4 on page 90 and its answer in the Appendix on

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