Road transportation business, 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 litter is Rs 25 and the vehicle gives an average mileage of 4 km to a litter. 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 transportation business

ERP, DESCRIBE THE ENTERPRISE RESOURCE PLANNING

DESCRIBE THE ENTERPRISE RESOURCE PLANNING

Explain mixed strategies in production planning, Distinguish between pure a...

Distinguish between pure and mixed strategies in production planning. Provide examples of each strategy.

Define construct a stem-and-leaf display, Use the data in Exhibit 16-5 to c...

Use the data in Exhibit 16-5 to construct a stem-and-leaf display

Explain conference related to effective management, Specific subject conten...

Specific subject content for a conference related to effective management

Problems that can plague groups as organizations is groupth, One of the rec...

One of the recognized problems that can plague groups and organizations is groupthink. Do some research on the groupthink phenomenon? What is it? When does it occur? What are some

Principles and Practices of Management, How will you influence people to st...

How will you influence people to strive willingly for group objectives in your organization (target based industry)? Apply your interpersonal influence through communication proces

Describe what options does jane have, Incident 2.2 what options does Jane h...

Incident 2.2 what options does Jane have? What influence, if any, would the federal government have in this case?

Explain implement any change in strategy, 1. Describe how you think the hot...

1. Describe how you think the hotel's management will: (a) make sure that the way it manage the hotel is appropriate to the way it competes for business; (b) implement any change i

What needed to accurately predict capacity, 1) A process oriented layout wi...

1) A process oriented layout will minimize the total time spent on setting up machines? 2) By increasing the capacity of an operation you improve its efficiency. 3) Standard

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