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

Process selection, Process Selection There are many production proces...

Process Selection There are many production processes moreover a part or a component can be manufactured by two or more processes. The process engineer should select a proces

States the numerical flexibility workforce, States the numerical flexibilit...

States the numerical flexibility workforce? Numerical flexibility allows a firm to adjust quickly to changing levels of demand through increasing or decreasing the number of

Explain what will be the company''s return on equity, Midwest packaging's R...

Midwest packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-asset ratio of 60%, which will result in annual intere

Explain labour practices requirements, From the legal perspective, what cha...

From the legal perspective, what challenges May supervisors face in filling the positions? How might they unintentionally run short of regulatory hiring and labour practices requir

Explain information and communication technologies, 1. One consequence of g...

1. One consequence of globalization is increased competition. 2. Due to globalization, organizations often locate parts of their operations in different countries. 3. Due to global

Understanding or knowing customer - customer satisfaction, Understanding or...

Understanding or Knowing Customer - Customer Satisfaction and Service Quality Involves making the effort to understand the customer's needs. It involves: learning the customer

Explain manufacturing budget, Explain manufacturing budget. Manufacturi...

Explain manufacturing budget. Manufacturing budget needs the following fundamental budgets or estimates to meet the plans:- (i) To be manufactured, production budget outlini

Explain worldwide the sale of alcoholic beverages is legal, Which of the fo...

Which of the following statements is true? Answer law applies to individuals only; not to groups or society as a whole the sale of marijuana is illegal worldwide the sale of alcoho

Explain significance of the brainstorming suggestions, Assess the significa...

Assess the significance of the brainstorming suggestions and determine how you might use this information to improve the chances of the project's success

Explain firms taking different business strategies, The value chain priorit...

The value chain priorities can be quite different for firms taking different business strategies. Create examples of value chains for three firms: one using cost leadership, anothe

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