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 spread harmful rumours gossips uses bad language, Sara spread harmf...

Sara spread harmful rumours gossips uses bad language and lack civility in relationship while at work/ in which of the following is sarah engaging in/1.proert deviance/ 2 productio

Explain level of threshold service of a least-cost system, What is meant by...

What is meant by the level of threshold service of a least-cost system

Explain what are the factors that affect employee motivation, Recruitment i...

Recruitment is of little use if an organization cannot retain key employees. Therefore, it is critical that organizations properly motivate and reward their employees. What are t

Explain the various classifications of stakeholders, An Organization: Its M...

An Organization: Its Mission and Strategic Intent In this assignment, you will decide on a company's strategic intent, its mission, and the role of stakeholders in developing an

Network diagram, 5. A network consists of the following list. Times are giv...

5. A network consists of the following list. Times are given in weeks. Activity Preceding Optimistic Probable Pessimistic A -- 5 11 14 B - 3 3 9 C -- 6 10 14 D A, B 3 5 7 E

Explain what is the probability that you will make money, The owner of Fire...

The owner of Firewood-2-Go is considering buying a hydraulic wood splitter which sells for $50000. He figures it will cost an additional $80 per cord to purchase and split wood wit

What are the qualities you believe are important in a leader, Name three qu...

Name three qualities you believe are important in a leader. Elaborate on each of those qualities. Do you think a leader today has to be more aware of their ethical behaviours than

Explain what is lori''s productivity, Lori produces "Final Exam Care Packag...

Lori produces "Final Exam Care Packages" for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Lori's productivit

Explain systems model of organizations, Finding solutions to problems is af...

Finding solutions to problems is affected by how one frames the problem. In other words, what one thinks is wrong will influence what one believes the available solution(s) to be.

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