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

How managing and using performance data, Identify three aspects of managing...

Identify three aspects of managing and using performance data so that it is useful to the organization. Provide an example of each aspect. Be specific in your response.

Analyzing layouts with computers, Analyzing Layouts with Computers Du...

Analyzing Layouts with Computers Due to the advent of computers and software faculties. Presently computers are used to design the facility layout. Digital computers are wide

Explain industrial products and consumer products, Compare and contrast ind...

Compare and contrast industrial products and consumer products

Explain approach the technology issues facing the company, As the advisor t...

As the advisor to Keyes what offensive or defensive strategic options would you recommend for blockbuster as the company moves forward? In particular, how would you approach the te

Operations management, a small assembly line for the assembly of power stee...

a small assembly line for the assembly of power steering pumps needs to be balanced. exhibit 8.11 is the precedence diagram. the cycle time is determined to be 1.5 minutes. how wou

Describe health care in your own community, Technology Assessment analyze t...

Technology Assessment analyze the basic technology underlying health care information systems and determine the most pressing need for innovation. 2. Explain (with specific example

Describe benefits of free international trade, What are the benefits and di...

What are the benefits and disadvantages of free international trade for the United States?

Explain why is km extremely valuable in areas of research, Why is KM extrem...

Why is KM extremely valuable in areas of research and development? How do the different components of MITRE's KM system assist in spreading knowledge throughout its labs and in sto

Explain what is the critical path, The following represents a project that ...

The following represents a project that should be scheduled using CPM: Time (DAYS) Activity Immediate Predecessors a m b A - 1 3 5 B - 1 2 3 C A 1 2 3 D A 2 3 4 E B 3 4 11 F

Use cases, A case study presents an account of what happened to an organisa...

A case study presents an account of what happened to an organisation or business over a period of time. It chronicles the events that occurred within that organisation and which th

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