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 demand for product is not a constraint, Which of the following is t...

Which of the following is true? Once you complete the five steps, the process is complete Another constraint will always appear when the original constraint is broken Dema

Define the rationale behind the recommendations you offered, • Recommend st...

• Recommend strategic alternatives for the company you researched. Explain the rationale behind the recommendations you offered. • Analyze the different types of strategies disc

Centre of gravity method, Hi, I am looking to find any potential benefits o...

Hi, I am looking to find any potential benefits of the centre of gravity locational theory, in addition to this, would like to know of any potential drawbacks that the theory entai

Explain how does radisson hotels worldwide apply capacity, How does Radisso...

How does Radisson Hotels Worldwide apply Capacity and Scheduling, and quality?

Why job redesign requires organizational change, Job redesign requires orga...

Job redesign requires organizational change. What barriers to change exist within most organizations, and how might they be overcome? I know these are some barriers, but I don't fe

Explain uninformed aspiring international business executive, Our Internati...

Our International Management text cites in Reading 1.2 that:"U.S Management theories contain a number of idiosyncrasies not necessarily shared by management elsewhere" and then pro

How hrm is described as a primary activity, In Porter's value-chain model ...

In Porter's value-chain model a. HRM is described as a primary activity b HRM is described as a support activity c HRM is not mentioned as an activity d HRM is describe

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 operating cost & labour cost, A location analysis for Temponi Contr...

A location analysis for Temponi Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to 4 locations. Temponi will need to train assembl

Explain transparency in communication a sure winner, Type your question her...

Type your question here is transparency in communication a sure winner, or could a manager have problems with it?

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