After working for 30 years, Ramjee Somjee Dutt, 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:- After working for 30 years, Ramjee Somjee Dutt

Explain the financial ratio analysis on harley davidson inc, What is the fi...

What is the financial ratio analysis on Harley Davidson Inc 2008?

Bar chart - scheduling, Bar Chart - Scheduling A pictorial chart also ...

Bar Chart - Scheduling A pictorial chart also known as the bar chart was developed by Henry L. Gantt around 1990 and is used to deal with complex activities. Out of the variou

Explain coordinated system, You have been named human resource manager for ...

You have been named human resource manager for a company that has 180 employees and no formal base pay system. What steps will you take to developed such a coordinated system?

Explain lincoln electric and southwest airlines, Compare and contrast Linco...

Compare and contrast Lincoln Electric and Southwest Airlines with regard to the following • Views of management regarding union representatives of their workers. •

Find which among the following statements are correct, If random variable X...

If random variable X follows the Normal distribution. X~Normal(10,10). Which among the following statements are correct? Answer a. P(X b. P(X=10)=0 c. P(X>8)=1-P(X

Importance of layout, Importance of Layout 1. Economic in Handling : ...

Importance of Layout 1. Economic in Handling : Nearly 30 per cent   to 40 per cent of the manufacturing costs in accounted for by materials handling. Every effort should ther

Describe the importance of correctly stating the objective, Explain the imp...

Explain the importance of correctly stating the objective function and constraints in linear optimization problems. Provide a few examples of the problems that could result if the

Explain the attitudes or traits of an engineer, Describe the attitudes or t...

Describe the attitudes or traits of an engineer that make the engineer unqualified to be a manager

Explain generally unnecessary to have every single function, It is generall...

It is generally unnecessary to have every single function represented on the core team of the project as that would make the team large than necessary and difficult to communicate

Describe what these two service level mean, A cigar company stocks Cuban ci...

A cigar company stocks Cuban cigars that have variable lead times because of the difficulty in importing the product. Lead time is normally distributed with an average of 6 weeks a

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