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

Capacity utilisation, Benefits of outsourcing and how to improve capacity u...

Benefits of outsourcing and how to improve capacity using ratio rastionalisation and sub contracting

Explain way that pandora could benefit from grid computing, Develop a way t...

Develop a way that Pandora could benefit from grid computing

Define the amount of fabric she needs is to forecast, The percentage of val...

The percentage of value of shipments that come from materials for the average manufacturer is: a. greater than or equal to 40 and less than or equal to 49 percent. b. greater than

Describe the legal and ethical issues surrounding solyndra, Discuss the leg...

Discuss the legal and ethical issues surrounding Solyndra, the California based solar panel manufacturer. You will need to research the company through the University library. Inco

LEAN STNCHRONIZATION, what are the wastes and how to overcome them?

what are the wastes and how to overcome them?

Explain what challenges or barriers may happen, You are part of a group of ...

You are part of a group of newly hired team superintendents with Riordan Manufacturing. Your group was hired to lead new teams and begin production of the newly designed CardiCare

Describe reducing equipment in the production process, Design for manufactu...

Design for manufacturing and assembly delivers product improvements by emphasizing which of the following? Reducing product quality during the assembly process Simplification

Why a project manager desires a work breakdown structure, A project manager...

A project manager desires a work breakdown structure that goes through 6 levels of detail. Level 3 through level 6 would most likely be prepared by: Answer Project sponsor

Differentiate between quality assurance and quality control, Question: ...

Question: (a) ‘Quality has been identified as one of the performance objectives.' Give three reasons why quality is important for a service provider such as a Tourist resort

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