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

Describe the differences between utilization and efficiency, Discuss the di...

Discuss the differences between utilization and efficiency as measures of system performance. Which (if any) is the most useful measure for an operations manager? Why?

Describe does anyone have a screenshot of page, Does anyone have a screensh...

Does anyone have a screenshot of page 91 so that I can do question 3.14? My book has not come in yet and the eBook trail that I have been using does not have that question in it. I

Value driven approach, value driven approach to production managemeent

value driven approach to production managemeent

Depict a fish-bone chart showing causes of defective product, Boston Electr...

Boston Electric Generators has been getting many complaints from its major customer, House Station, about the quality of its shipments of home generators. Daniel shimshak , the pla

Linear Programming , A paper mill produces two grades of paper viz., X and ...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Explain communication behaviours destroy trust, One of the most important f...

One of the most important factors determining whether organizations and their members will be high performance is the presence of trust between leaders and followers. What types of

Why lower cost gives advantage over competitors, If you were marketing a lo...

If you were marketing a lower cost ($20-$50) product in a highly competitive field, which of the four Ps would you prefer to have an advantage over your competitors, and why?

Explain repetitive focus and mass customization strategies, Provide and exp...

Provide and explain three or more common elements and three or more differences between repetitive focus and mass customization strategies.

Argument for application of methods of scientific management, 1. What are t...

1. What are the arguments for and against the application of the methods of scientific management? Answer: The main argument against scientific management is that in de-skilling

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