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

Describe the ways in which culture and technology coincide, Discuss the way...

Discuss the ways in which culture and technology coincide. Give an example from your own experience or the experience of others where culture and technology have impacted one anoth

Explain smoothing constan, Systembolaget uses forecasting to predict the nu...

Systembolaget uses forecasting to predict the number of bottles they think they will sell the next day. Below are the number of bottles sold each day during the five-day work week

Enterprise architecture process, The Enterprise Architecture process i...

The Enterprise Architecture process is one of a number of Information System management processes that occur simultaneously within a large financial services institution

Efficiency of the organisation, Question : Describe as to how the maint...

Question : Describe as to how the maintenance planning will help improve the effectiveness and efficiency of the organisation Advantages of having planning as an exclusive f

Siting departments for process layout - manufacturing, Siting Departments f...

Siting Departments for Process Layout - Manufacturing One of the most significant features of the siting of departments in a process layout is its surprising complexity. Even

Briefly explain the matrix form of organization design, Briefly describe th...

Briefly describe the matrix form of organization design. List its advantages and disadvantages. This structural form is most likely to be used under what conditions?

Describe what will be the duration of management conference, What will be t...

What will be the duration of a management conference duration?

Explain ethics becomes less practical, Which among the following frameworks...

Which among the following frameworks of ethics becomes less practical with an increase in the number of people, animals, etc. that could be affected by decisions made?

Suggest productivity measurements - operations manager, 1. Suggest producti...

1. Suggest productivity measurements which operations managers might consider important to be used in a:  (a) hotel  (b) University  (c) Department store  (d) Hospital

What are the advantages accrue to training evaluation, What advantages accr...

What advantages accrue to training evaluation that measures return on investment (ROI)? What are some of the obstacles to implementing ROI measures, and how can they be overcome?

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