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

Alternative process sequences - products , Alternative process sequences - ...

Alternative process sequences - products Even when the type of process flow has been established, there remains the task of determining the particular sequence of processes t

Ethical statements for mass-marketed, To be consistent with its stated valu...

To be consistent with its stated values of improving the health of its consumers, General Mills introduced ethics into the ______ phase of its marketing strategy for its mass-marke

Explain how to expand company, How to expand company, drive growth, and not...

How to expand company, drive growth, and not sacrifice margins?

Questions, A manufacturer of business copier workstations has a 75 percent ...

A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overead as

Selection criteria for the type of scheduling, Selection Criteria for the T...

Selection Criteria for the Type of Scheduling There are several types of scheduling system selection of a particular system depends on a number of factor. Some of these are des

Compute a regression line and forecast the demand, The number of heart surg...

The number of heart surgeries performed at Heartville General Hospital has increased steadily over the past several years. Use the data below to calculate a regression line and for

Determine the optimal quantity , Suppose you are overseeing the purchasing ...

Suppose you are overseeing the purchasing of a certain commodity for the following year. The demand for this item is estimated to be 20,000 units/year, and steady throughout. Every

Explain the features of six sigma, Question 1: Explain the features o...

Question 1: Explain the features of Six Sigma. • shifts the paradigm quality as the cause of good business performance • The philosophy is to make fewer mistakes. • Is a

Explain vision statement and a mission statement, Should organizations have...

Should organizations have both a vision statement and a mission statement? If you were to lead an organization and you could have only one, a mission or vision statement, which wou

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