operation management, Management Theories

Assignment Help:
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:- operation management

Bureaucreacy, beareaucreacy approach is appropriate for neslte organization...

beareaucreacy approach is appropriate for neslte organization perfomance or not?

Short term financing & working capital, Short Term Financing & Working Capi...

Short Term Financing & Working Capital: Short-term financial decisions generally involve short-lived assets and liabilities, and usually they are easily reversed. Short term or

Functional Organisation, What is a Functional organisation? What are their ...

What is a Functional organisation? What are their strenghts and weaknesess? If oyu can name some practical examples for use of functional organisation.

Quality control, what is quality control in total quality management?

what is quality control in total quality management?

Strategic human resource, Develop and explain your own comprehensive model ...

Develop and explain your own comprehensive model of strategic human resource management by integrating the various models of Human Resource Management. Ensure that your model has a

Jumping Jack Flash case study, Should Jack have taken the special assignmen...

Should Jack have taken the special assignment offered to him by the consumer products firm?

Human resource management, how to ethically aplly human resource systems an...

how to ethically aplly human resource systems and designs

Leader vs manager, Describe the 6 differences between managers and leaders

Describe the 6 differences between managers and leaders

Case study, What structural change is indicated at Plaza Inn

What structural change is indicated at Plaza Inn

The employees are unionized, The ponchatrain bridge is a 16 mile toll bridg...

The ponchatrain bridge is a 16 mile toll bridge that crossesLake Ponchatrain. Currently, there are 7 toll booths, each staffed by an employee. Since Hurricane Katrina, the port Aut

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