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

Operations and supply chain management, Operations and Supply Chain Managem...

Operations and Supply Chain Management XYZ Inc distributes and sells tyres. While most of XYZ's sales come from earthmover and industrial tyres, they also stock and sell a ver

Markov analysis, can you please give me a simple example of markov analysis...

can you please give me a simple example of markov analysis

Explain payoff table provides profits based on decision, The following payo...

The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Amber Gardner's software firm: DEMAND Decision LOW

Is work measurement used in organisation - process design, Is work measurem...

Is work measurement used in Organisation - Process Design Is work measurement used in your own organisation? If not, then give thought to how: alternative methods are compared

Define skills needed in order to succeed as systems analyst, Discuss the ty...

Discuss the types of skills needed in order to succeed as a systems analyst

Explain rent-a-car liable for the injuries to the plaintiff, U.S. v. Farraj...

U.S. v. Farraj contended that he transmitted information, not goods. Do you think that position is correct? Q2) Phillips v. Budget Rent-a-Car Answer the question Is Budget Rent-a-C

Define if its compensation was externally competitive, How might a company ...

How might a company determine if its compensation was externally competitive?

Evaluate many supply chain strategy considerations, Evaluate various supply...

Evaluate various supply chain strategy considerations for managers moving products or services to the consumer.

Define frame relay is a technology that does noerror control, Frame relay i...

Frame relay is a technology that does no error control. If a frame arrives garbled, it is dropped and frame relay does not inform the transmitter. Is this a reasonable approach?

Explain the probable destiny competing products, Consider this: Lee Peterso...

Consider this: Lee Peterson has invented a new product that detects water leaks due to broken pipes and sends out an alarm similar to a smoke alarm. However, Lee has very little pe

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