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 important terms of the factories act 1948, Explain important Terms ...

Explain important Terms of the factories act 1948. Important Terms of act: (a) Factory:  A place wherein ten or more persons are working and wherein a manufacturin

Explain the precedence relationships and the estimated times, A project con...

A project consists of activities A, B, C, D, E, F, and G. The precedence relationships and the estimated times to complete each activity are given below: Activity Preceding Activit

Explain what are the advantages and disadvantages, Discuss the advisability...

Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages and disadvantages?) To what extent can these arguments be applied to service product

What are the advantages of process mapping, What are the advantages of proc...

What are the advantages of process mapping? Advantages of process mapping are as follows: a. It can be used for structured ‘walk by testing to confirm knowing of workflow, c

Measures to prevent accidents, Measures  to prevent Accidents 1. Prope...

Measures  to prevent Accidents 1. Proper Selection  of Workers: A scientific selection  of workers  is more  important from safety  point  of view.  The attitude  and  aptitu

Explain what are equitable and legal remedies, As a new manager in your dep...

As a new manager in your department, you are tasked with the job of providing employee training for members of your department who have interactions with the legal department. In o

Explain the guidelines overall arrangement in retail stores, 1. Briefly des...

1. Briefly describe the guidelines for determining the overall arrangement in Retail Stores. 2. Briefly describe the advantages of Work Cells. 3. Compare/Contrast how the concept o

Explain different levels of diversification firms, What are the different l...

What are the different levels of diversification firms can purpsue by using different corporate level strategies and what are the advantages to diversifying their operations?

Explain crossover point among the existing process, The local convenience s...

The local convenience store makes personal pan pizzas. Currently, their process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and

Case let, 1. What modification would you suggest in enhancing the existing ...

1. What modification would you suggest in enhancing the existing logistics system?

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