Road Transport, 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:- Road Transport

Manufacturing sector - operation strategy, Manufacturing Sector - Operation...

Manufacturing Sector - Operation Strategy 1. Manufacturing has become a global industry with worldwide markets and worldwide suppliers  2. Goods becoming commodity items -

Define what are the major options for appraisal of employees, What are the ...

What are the major options for appraisal of employees? Discuss each option, identifying the one that you think is best and why you chose that option

Explain recommendations with the external distribution, Lucille Jenkins, th...

Lucille Jenkins, the CEO for the Durham International Manufacturing Company (DIMCO), believes that the company can significantly increase its operating profit by implementing suppl

Explain ethics training back to the workplace be maximized, Define the term...

Define the term, transfer of learning. (2) A critical issue in training is the transfer of training, and ethics training is no exception. How could the transfer of ethics training

Explain considerations in designing organisation structure, Explain main co...

Explain main considerations while designing the organisation structure. While designing the organisation structure, there are two major considerations:  - Differentiation an

Explain the variable cost to produce each unit, Assume a fixed cost for a p...

Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the followi

Explain what is the production, A local market research firm has just won a...

A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each

Explain is not one of the three types of specifications, Which of the follo...

Which of the following is not one of the three types of specifications discussed in the text? Answer Design specifications Material specifications Performance specifica

Explain a typical self-managing team is comprised of, Need these questions ...

Need these questions answered; Have to do a paper on the answers. 1. XYZ, Inc. is making decisions and taking actions with regard to pricing, promotion, and product design of th

Ans, What do you understand by “line balancing”? What happens if balance do...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

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