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 a market-product grid is a framework to relate the, A market-produc...

A market-product grid is a framework to relate the _____ to products offered or potential marketing actions by an organization. estimated expenses for products sold total ant

Define deming and crosbys views, Compare and contrast Deming and Crosbys vi...

Compare and contrast Deming and Crosbys views on the cost associated with a lost customer.

Qn, a firm whether to make or buy a part required in its operation. cost an...

a firm whether to make or buy a part required in its operation. cost and volume estimate are as follows annual fixed cost make $15000 buy none, variable cost make $60 buy $80, annu

How developing a strategic plan for a company, Analyze the steps involved i...

Analyze the steps involved in developing a strategic plan for a company and determine which step is the most difficult to get right. Explain your rationale

What are the qualities you believe are important in a leader, Name three qu...

Name three qualities you believe are important in a leader. Elaborate on each of those qualities. Do you think a leader today has to be more aware of their ethical behaviours than

Hard change initiatives - linking strategic, Hard Change Initiatives - Link...

Hard Change Initiatives - Linking Strategic 1. Total quality management (TQM)/ISO 9000  2. Enterprise resource planning (ERP)/material requirements planning; manufacturing

Explain what is the current capacity-number of orders, Identify the process...

Identify the process strategy you will utilize at CPC and explain why this strategy is appropriate for your business. Create a process flow chart for CPC. Identify opportunities to

Explain appellate jurisdication, Stan Garner resides in illinois and promot...

Stan Garner resides in illinois and promotes boxing matches for Supersports, INC. an Illinois corporation. Garner created the conect of "ages" promotion- a three fight series of bo

Explain what is the utilization rate of this service system, "Fast Eddie" F...

"Fast Eddie" Flournoy manages the service equipment division of Delta Airline's Atlanta terminal. He keeps a service crew on call to repair tow tractors that break down. Tractors b

Explain areas of internal systems and technology, Given that the question o...

Given that the question of open and closed systems is more of a continuum than a yes/no question, do you believe that more closed systems are better able to assess and improve thei

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