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

Reference Book, Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge...

Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge and Management. Subject is there Materials & Production Management, but i want a perfect reference book where i get all

Explain financial ratios, Analyze the 12 financial ratios and determine whi...

Analyze the 12 financial ratios and determine which is the most useful to the greatest number of small businesses. Explain your rationale

Explain various models and treatment of mental illness, I am listing three ...

I am listing three different category's I need cited and referenced: 1). Alternative Medicine,2). Human Service Models. 3). Comparing the Various Models and Treatment of Mental Ill

Find annual carrying costs, Garden Variety Flower Shop uses 740 clay pots a...

Garden Variety Flower Shop uses 740 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs a

How to compute the expected labor, The following table shows data on the av...

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $30, overhead rate is 1.0 times labor co

Explain compare and contrast utilitarianism with situationis, Compare and c...

Compare and contrast Utilitarianism with Situationism

Explain gather information outside a case analysis, When should you gather ...

When should you gather information outside a case analysis by going to the library or using the Internet and, what should you look for?

Explain generating positive organizational behaviour, One of the constants ...

One of the constants in organizations is the presence of change. In almost all change scenarios, human behaviour is impacted. However, organizational members often resist change. W

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

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