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

Describe how the marketing mix differs for each segment, Select an everyday...

Select an everyday product (personal fitness training, CDs, dog food, cell phones, shoes for example). Show how different versions of your product are aimed toward different market

What helps ups to achieve its business objective, How the web site helps UP...

How the web site helps UPS to achieve its business objective?

Operations management, Operations Management refers to those activities whi...

Operations Management refers to those activities which are more or less directly concerned with the creation and delivery of goods and services. The course is intended to give you

List the five styles of leadership are situational, The five types of leade...

The five types of leadership styles are most applicable in certain situations. Discuss the applicability of each of the five types in project leadership situations and its usefulne

Describe the several components of inventory holding cost, Question: (a...

Question: (a) (i) What are the assumptions to be respected while deriving the Economic Order Quantity formula. (ii) Describe the several components of inventory holding c

Is true or not that demand for product is not a constraint, Which of the fo...

Which of the following is true? Once you complete the five steps, the process is complete. Another constraint will always appear when the original constraint is broken. De

Explain minimize make span in a two machine flow shop, Please explain your ...

Please explain your answer- Johnson's rule gives the optimal answer for which of the following type of problems? A) Minimize make span in a two machine flow shop B) Minimi

Illustrate your discussion using a service organisation, Question 1: "Y...

Question 1: "Yield management guides the decision of how to allocate undifferentiated units of capacity to available demand in such a way as to maximize profit or revenue." Cri

Explain during the campus spring fling, During the campus Spring Fling, the...

During the campus Spring Fling, the bumper car amusement attraction has a problem of cars becoming disabled and in need of repair. Repair personnel can be hired at the rate of $20

How to designing the marketing strategy, In designing the "marketing strate...

In designing the "marketing strategy" for your own business, how might you use "segmentation variables" to help you identify your "target market"?

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