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

Why competitive priorities are important, Androsia manufactures batik fabri...

Androsia manufactures batik fabrics in a labor intensive, low-volume process on the island of Andros. The Hershey tour shows how cocoa beans are processed into chocolate using a hi

Explain foreign domestic investment confidence index, How is foreign domest...

How is foreign domestic investment confidence index useful to businesses?

Explain what is the horizon value, Current and projected cash flows for Ran...

Current and projected cash flows for Randell Global Operatons are shown below. Growth is expected to be constant after 2012, and the weighted average cost of capital is 11%. What i

Explain systems thinking to simplify your daily life, How can you use Syste...

How can you use Systems Thinking to simplify your daily life? Or is System Thinking just a "corporate" way of defining and justifying common sense?

Explain what are different ways to test would it works, 1) One change metho...

1) One change method is to encourage testing activities throughout the change process. "Piloting" ideas throughout the change process gives opportunities that are safe to challenge

Explain why do companies that advertise their csr policies, 1. Why do compa...

1. Why do companies that advertise their CSR policies so often face serious controversies anyway 2. Identify an area in which Apple is regarded as responsible to a stakeholder

Explain why are company/organizational politics important, Why are company/...

Why are company/organizational politics important to a manager?

Identify different types of quality system, (a) Identify different types of...

(a) Identify different types of quality system/philosophy/approaches and critically discuss the relative effectiveness of the philosophy, systems and approaches (b) Evaluate the

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