Case Study, 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:- Case Study

Explain the decreased demands of ongoing operational work, All of the follo...

All of the following factor have influenced the increased reliance upon project management in recent years EXCEPT: A. Rapid growth and change in the information technology and t

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

Explain what suggestions do you have for improving program, Go to skillsoft...

Go to skillsoft.com, the website for Skill soft, a company that specializes in providing e-learning solutions. Move the cursor over Info Center, then over Demos. Click on Business

Number of rules for string diagram, There are a number of rules developed a...

There are a number of rules developed and given under three broad headings: 1. Related to the use the Human Body : a. The two hands should beings as well as complete their

Management and leadership, How have you demonstrated on a daily business yo...

How have you demonstrated on a daily business your ability to find the optimal balance between leading and managing?

Assets and liabilities, The Dominos pay their household bills and everyday ...

The Dominos pay their household bills and everyday expenses from their joint chequing account, which has a current balance of $4,200. They both opened Tax Free Savings Accounts and

Explain self-managed teams perform entire jobs, Self-managed teams perform ...

Self-managed teams perform entire jobs, rather than specialized assembly-line work.

Explain how is crisis leadership different from leading, How is crisis lead...

How is crisis leadership different from leading under normal circumstances? If leaders wanted to fine-tune their crisis leadership styles, how would you suggest they practice witho

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