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 the expected rate of return, Debt: Jones Industries borrows $6...

Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the expected interest rate (cost of debt)? Internal common stock:

Explain generally unnecessary to have every single function, It is generall...

It is generally unnecessary to have every single function represented on the core team of the project as that would make the team large than necessary and difficult to communicate

Operation strategy in organisations, Operation Strategy in Organisations ...

Operation Strategy in Organisations 1. There are three schools of thought in strategic thinking: rationalist, evolutionist and some combination of both.  2. There are multi

Explain the leadership styels of freed hammond, Identify the leadership sty...

Identify the leadership styels of freed Hammond and May Allison. Apply several of the leadership models to the case, such as the contingency model and the Hersey Balanced situation

Explain the prediction method, The following data concerns fuel sales by a ...

The following data concerns fuel sales by a distributor and is given in thousands of gallons. A. For each of the cases predict the fuel sales for the next twelve-month period. C

Explain credit union as opposed to a bank, Jo maintained a checking account...

Jo maintained a checking account at Second Bank. In April, the bank sent her a statement of her account for March, accompanied by the checks that the bank paid. Jo realized that on

Explain how much would land''s end buy, (Land's End) Geoff Gullo owns a sma...

(Land's End) Geoff Gullo owns a small firm that manufactures 'Gullo Sunglasses'. He has the opportunity to sell a particular seasonal model to Land's End. Geoff offers Land's End

Logistics, Ask question #Minimum 100 words acceptedTopic 2: Logistics Logi...

Ask question #Minimum 100 words acceptedTopic 2: Logistics Logistics is the management of the flow of goods, information and other resources, including energy and people, between

Explain companies can voluntarily acknowledge a union, Companies can volunt...

Companies can voluntarily acknowledge a union through a card check recognition process if it appears to have 30% support.

Depict a fish-bone chart showing causes of defective product, Boston Electr...

Boston Electric Generators has been getting many complaints from its major customer, House Station, about the quality of its shipments of home generators. Daniel shimshak , the pla

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