Management consultant firm, 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:- Management consultant firm

LP, SHAYO & Sons is a canning company in Arusha that currently operates two...

SHAYO & Sons is a canning company in Arusha that currently operates two small canning State Mining Corporation (SMC) is establishing a production plan for the current week at its M

Explain how does mobile technology address day-to-day, How does mobile tech...

How does mobile technology address day-to-day business pressures?

Explain creation of a microsoft project file, Creation of a Microsoft Proje...

Creation of a Microsoft Project File Follow the instructions below to create a small project file to submit to your instructor. Instructions: Load Microsoft Office Project 2007 "tr

Explain what is a learning organization?, Q1. What is a learning organizati...

Q1. What is a learning organization? Q2. 1. "JUST DO IT" advertisement for Nike. What is the marketing purpose of this slogan? Is this slogan effective? 2. "DAIMONDS ARE FORE

System design, what scussyiefly disbrstem operations

what scussyiefly disbrstem operations

Location strategy, Location Strategy It is difficult  to set  down ru...

Location Strategy It is difficult  to set  down rules whereby the problem  of facilities  location  can be  programmed but  there  are a number of factors which  should be  c

Explain a recruitment process, Describe a recruitment process that would pr...

Describe a recruitment process that would provide a pool of pre-qualified candidates for the seven open trainer positions.

Explain veronique to improve the process, What suggestions would you make t...

What suggestions would you make to Veronique to improve the process?

Define the resources over and under capacity, Define the resources over and...

Define the resources over and under capacity. The resources over and under capacity: a. Over capacity: it is also called as spare capacity resources for example, staff

Explain role of the small business administration, Analyze funding opportun...

Analyze funding opportunities for small businesses, including the role of the Small Business Administration (SBA). Then, evaluate the effectiveness of these funding opportunities i

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