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

Work study, what are all steps involved in work study

what are all steps involved in work study

The central evaluation unit case study with answers, Summarize the problems...

Summarize the problems of the CEUPU process and suggestions you make to Veronique to improve her process

Process design, what is process design in operation management

what is process design in operation management

Explain collective bargaining process, Detail the five measures that unions...

Detail the five measures that unions have taken in the collective bargaining process to introduce provisions that would protect employees displaced or laid off due to technology ch

Consolidated statements of operations management, Corrpro Companies, Inc., ...

Corrpro Companies, Inc., founded in 1984, provides corrosion control-related services, systems, equipment, and materials to the infrastructure, environmental, and energy markets.Co

Explain waste elimination plan, Do a lean waste analysis on the goal and cr...

Do a lean waste analysis on the goal and create a waste elimination plan. (List the seven forms of waste, list items in the goal by waste form, determine what could be done to redu

Quantitative versus qualitative measurements, Quantitative Versus Qualitati...

Quantitative Versus Qualitative Measurements A variety of formulae can be used to determine productivity as illustrated. These are generally referred to as 'hard' or quantifia

What factors would you consider in promotions distribution c, As the Market...

As the Marketing Manager for Proctor and Gambles Pet Nutrition and Care division you have been asked to consider launching a new dog food product in Mexico. What factors would you

How to avoid penalties, Select an article relating to workplace safety and...

Select an article relating to workplace safety and answer the following questions: 1. briefly summarize the article 2. What alternatives could the place of business have taken in o

Define what are the three steps in completing a job analysis, As an entrepr...

As an entrepreneur, how would you go about doing a job analysis for the first employee you are going to hire in your new business? What are the three steps in completing a job anal

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