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 what is the expected project length, Task time estimates for a prod...

Task time estimates for a production line setup project at Robert Klassen's Ontario factory are as follows: Immediate Activity Time (in hours) Predecessors A 6.0 - B 7.2 __ C

Explain level refers to what, in the context of motivation; level refers to...

in the context of motivation; level refers to----------- 1.an individual choice when present with a number alternatives/2.the consequences of an individual behaviour/3.the amount o

Determine the normal completion time and cost, Atkinson department is insta...

Atkinson department is installing new computer system. They have to perform several activities. Following table provides information about the project: Activity

Explain the risk evaluation process, Discuss and describe the risk evaluati...

Discuss and describe the risk evaluation process in a simplified approach.

Explain flight reservations and vacation packages, Which strategy does this...

Which strategy does this exemplify? Kayak and Orbitz provide their customers with a variety of travel options including flight reservations, vacation packages, flight and hotel opt

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 earned value measurement is a technique, Earned value measurement i...

Earned value measurement is a technique: Answer Suitable for risk monitoring and control Unsuitable for risk monitoring and control Suitable for risk monitoring but uns

Explain creating a constant flow of new products, Explain creating a consta...

Explain creating a constant flow of new products or continually updating and improving the current product line: Within a product planning activity, this is clear that b

Plant layout, A plant layout should be designed in such a manner that ...

A plant layout should be designed in such a manner that it will provide safety and security of employees at all costs. Optimum plant layout calls for high operating e

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