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

Operation research, Six Operators are to be assigned to five jobs with the ...

Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given in the matrix below. Determine the optimal assignment. Which operator will have no assignment

Explain what are the minimum and maximum cycle times, An assembly line with...

An assembly line with 17 tasks is to be balanced. The longest task is 2.1 minutes, and the total time for all tasks is 23 minutes. The line will operate for 480 minutes per day. a.

Explain characterize the bacterial and bacterial-like, Characterize the bac...

Characterize the bacterial and bacterial-like STIs, focusing on infectious agents and manifestations

Explain the change management factors, Describe the change management facto...

Describe the change management factors that shape HR-business strategy.

Explain invest more money in the organization''s staffing sys, If your CEO ...

If your CEO asked you why she should invest more money in the organization's staffing systems, what would you tell her?

Describe the types of evidence that you would look for, Discuss the types o...

Discuss the types of evidence that you would look for in order to determine whether a needs analysis has been improperly conducted. How would you know? Why?

Define the temporal flexibility workforce, Define the temporal flexibility ...

Define the temporal flexibility workforce. Temporal flexibility can be accomplished by varying the hours worked through employees within response to changes into demand for

Explain how can you stress to a marketing manager, How can you stress to a ...

How can you stress to a marketing manager that marketing need to occur online, no matter if the company is operating in a brick and mortor building

Finding the r bar and x bar bar, The Canine Gourmet Company produces delici...

The Canine Gourmet Company produces deliciious dog treats for canines with discriminating tastes. management wants box-filling line to be so that the process averagee weight per p

What is meant by perpetual inventory system?, Ask question #What is meant b...

Ask question #What is meant by perpetual inventory system?Minimum 100 words accepted#

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