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

Presume that the market is demanding product, For the four basic configurat...

For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases I, II and III. For Cas

Key issues when implementing an erp system, 1. Discuss how you interpret th...

1. Discuss how you interpret the statement 'ERP is the 'meat and potatoes' of the organisation'.  2. What are the key issues when implementing an ERP system?  3. How will tra

Explain operating a business in an ethical manner, Operating a business in ...

Operating a business in an ethical manner takes time, effort and commitment. What are the key elements to a company having successful organizational ethics? What can we do as manag

Explain what do you think are the most important forces, What do you think ...

What do you think are the most important forces in the external environment creating uncertainty for organizations today? Do the forces you identified typically arise in the task e

Why communication is an important consideration in firms, Communication is ...

Communication is an important consideration in organizations, and a number of different constructs fit within the communication viewpoint. What types of leader communication attitu

What is the assessment of overall industry attractiveness, Goggle's Strateg...

Goggle's Strategy 2010: Which of the five competitors seem strongest against Google? Weakness? What is your assessment of overall industry attractiveness?

What are the advantages of using single sourcing strategies, What are the a...

What are the advantages of using single sourcing strategies? Advantages of using Single sourcing: a. Simple to keep relations along with only one supplier b. Simple to

Alternative process sequences - services, Alternative Process Sequences - S...

Alternative Process Sequences - Services Just as in the selection of processes for product production, typically there will be alternative ways of delivering a service. Consid

Explain your approach to tracking a project, Describe your approach to trac...

Describe your approach to tracking a project. What kinds of issues would you focus on if you were a project manager? Why?

Write some possible entities and attributes, Develop a list of some possibl...

Develop a list of some possible entities and attributes located in chill's restaurant database.

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