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 how will you account for any wastage, You are the branch operations...

You are the branch operations manager for a leading manufacturing company. The following are the bill of materials (BOM), Master Production Schedule, and Inventory Record Sheet for

Quality management systems - improving productivity, Quality Management Sys...

Quality Management Systems - Improving Productivity The introduction of approaches such as ISO 9000; Total quality management, business process reengineering, just-in-time ope

Operation mangment, George kyparsis determines his cost to be as follow

George kyparsis determines his cost to be as follow

Compute sample size to confirm or not the findings, If a pilot test reveale...

If a pilot test revealed 45% perceived poor service quality, and we decide the interval range is + 10 percent with a 95% confidence level, what is the calculated sample size to con

Define the term total quality management in short, Define the term total qu...

Define the term total quality management in short. Total quality management (TQM): Total quality management is the procedure of embracing a quality conscious philosophy o

Define what ethical implications does organizational reality, You must pond...

You must ponder on an organizations responsibility to its workers whose skills have become obsolete. Considering the rapid pace of technological change, workers jobs will (and must

Describe the risks associated with levelling resources, Explain the risks a...

Explain the risks associated with levelling resources, compressing or crashing projects, and imposed durations, or catch-up, as the project is being implemented.

Explain how do mncs analyze this risk, In the context of International busi...

In the context of International business, what is meant by the term Cpolitical risk? In general, how do MNCs analyze this risk?

Supply chain, to what extent is SCM applicable to a service operation

to what extent is SCM applicable to a service operation

What steps must to be taken to maximize the sales-price, Identify key gaps ...

Identify key gaps in planning for the exit. Provide recommendations on the exit strategy. Is the sale the right one? What steps ought to be taken to maximize the sales-price? What

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