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

Calculate the desired cycle time, A company is setting up an assembly line ...

A company is setting up an assembly line to produce 192 units per 8-hour shift. The following table identifies the work elements, times and immediate predecessors:  (a)  Wh

MAD & MAPE, Sales of vegetable dehydrators at Bud Banis'' discount departme...

Sales of vegetable dehydrators at Bud Banis'' discount department store in St. Louis over the past year are shown below. Management prepared a forecast using a combination of expon

A trial balance discloses how many types of errors, A Trial Balance disclos...

A Trial Balance discloses how many types of errors? A Trial Balance discloses errors that are given below:   i)    An item posted double.   ii)   A mistake into posting.

Explain what is the annual cost for ordering item x, Item X is a standard i...

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,500 of item X, which costs $25 each. Storage cost

Sub optimisation - operations function, Sub optimisation - Operations Funct...

Sub optimisation - Operations Function Another important issue raised by the systems approach is that of sub-optimisation. This is of considerable significance for managers, a

Explain the annual interest payment, A bond has a coupon rate of 15%, a yie...

A bond has a coupon rate of 15%, a yield to maturity of 10.55%, and a market price of $850. Therefore, the annual interest payment is: a.) $850 b.) $150 c.) $105.50. d.) $120.0

Describe the mcgregor''s theory x-y, Explain the McGregor's Theory x-y , th...

Explain the McGregor's Theory x-y , the pros and cons of the theory

Explain the concept of merit goods, Explain the concept of merit goods with...

Explain the concept of merit goods with reference to the formal provision of education in a country.  Merit goods are those goods and services that society values and the gover

On what interest rate financial institutions offer loans, After working for...

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 busine

Process configurations - services, Process Configurations - Services S...

Process Configurations - Services Schmenner's service - process matrix was introduced, categorising service operations by the degree of labour intensity and the degree of cust

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