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

Optimal capacity determination, Optimal Capacity Determination For a g...

Optimal Capacity Determination For a given capacity of a plant the average unit cost of production of a product decreases as the output rate( say in number of units produced p

Explain purpose of completing the applied project, Students will choose lea...

Students will choose leader/s for the purpose of completing the applied project, which will be completed in two separate components (Mid Term and Final)-see syllabus, each of which

Explain organizational strategy is analyze organizations, Organizational St...

Organizational Strategy is Critically evaluate information from core business functions to enhance organizational knowledge, how would you assess your mastery of this competency?

Design a web page for the business function, 1. Design a Web page for the b...

1. Design a Web page for the business function (e.g., ordering, human resources, courier service, inventory listing, etc.). The Web page will have at least the following HTML: a

Compute present value of cash flow stream by interest rates, Calculate the ...

Calculate the present value of the cash flow stream in problem 2 with the following interest rates- 1. Year 1 = 8% 2. Year 2 = 6% 3. Year 3 = 10% 4. Year 4 = 4% 5. Year 5 = 6% 6. Y

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

Explain quality of work life, Why are unions exploring new collaboration so...

Why are unions exploring new collaboration solutions in the face of economic/work adversity, and how did Saturn's ambitious Quality of Work Life (QWL) program address these factors

What are the benefits and limitations of e-business, 1. Describe, in genera...

1. Describe, in general terms, the quality of staff needed to manage an ERP system?  2. According to Cisco Systems, on what simple truth is their entire Internet commerce initia

Give a specific definition of time study, Give a specific definition of tim...

Give a specific definition of time study. Time study It is defined as a work measurement technique for recording the times and rate of working for the component of a speci

Explain the united states constitution, The United States Constitution: Ans...

The United States Constitution: Answer is the oldest written constitution in force in a major nation created the four branches of government established the common law created the

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