operation management, Management Theories

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
Posted Date: 4/8/2012 11:31:19 AM | Location : United States

Related Discussions:- operation management, Assignment Help, Ask Question on operation management, Get Answer, Expert's Help, operation management Discussions

Write discussion on operation management
Your posts are moderated
Related Questions
• A descriptive comparison including the benefits and drawbacks of potential investments for each facility to reduce energy consumption

Case Study  Methods ( In Depth Interview): In  relatively  less known  areas where  there is little  experience and theory  available  to serve  as a guide  intensive study of

#please I need the templates of business report regarding design a product in real company

1. Access and describe current requirements of leadership within your selected examples. 2. Develop an internally consistent and plausible scenario of likely future requirements

What is the purpose of organization

Q. What is Le plan? In France All the business units will follow the centralized plan of the government. Such plans are prepare with the view of Maximization of national resour

explain the heterotrophic modes of nutrients

May i know what we shoud write regarding above topic ?Value Chain as a guide to resource analysis