operation management, Management Theories

Assignment Help:
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:- operation management

Capital structure, essential features of a sound capital structures

essential features of a sound capital structures

Hrm, discuss the demographic trends that are increasing workforce diversity...

discuss the demographic trends that are increasing workforce diversity

Frank and lillian gilbreth, Frank And Lillian Gilbreth: The following ...

Frank And Lillian Gilbreth: The following were the basic principles: a) The management should understand the need and nessasity of workers. b) Concept of 'speed work' we

Project life cycle, discuss the importance of stakeholders throughout the p...

discuss the importance of stakeholders throughout the project life cycle

assignment, an assignment on selection process of HR department in any com...

an assignment on selection process of HR department in any company

Training and development, explain in detail the role of HRD relation with t...

explain in detail the role of HRD relation with training,motivation,employee relation

A political approach to organisational change, Using report format (see 'As...

Using report format (see 'Assessment Criteria for presentation' and 'Rationale for the use of report format' in this Subject Outline), complete the following tasks. 1. To what e

Risk identification, how to identify risk''s in construction projects from ...

how to identify risk''s in construction projects from stake holder and project life cycle perspective.

Assigment, inwhich the following situation would you like to use statices a...

inwhich the following situation would you like to use statices a)buying a house b)purchasing medicine prescribed by a doctor c)investing funds in several option

Effect of environment on the organization, what are the effects of environm...

what are the effects of environment on the organization

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