Management Consulting/operation management

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Question
1.
In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what would be the quantities that would need amendment as far as Distribution Manager is concerned to service for week two and onwards?
After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of forecast , Lucknow did 75 % of forecast Kolkata did 60 % of week one forecast Chennai did 125 % of forecast and Delhi did 150 % of week one forecast


Note : Kolkata will receive transit stocks in week 2 .

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

Answer
CASE-2 (16 Marks)
In the table given below the Distribution Manager is expected to service these DCs as per the demands
placed. If the actual sales after completing week one is as follows, what would be the quantities that
would need amendment as far as Distribution Manager is concerned to service for week two and
onwards?
After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of
forecast , Lucknow did 75 % of forecast Kolkata did 60 % of week one forecast Chennai did 125 % of
forecast and Delhi did 150 % of week one forecast
Note : Kolkata will receive transit stocks in week 2 .
3 | P a g e

 


BASED  ON  ONE  WEEK  PERFORMANCE  ,  WE  CANNOT  CHANGE  ANY   FIGURES.
WE  SHOULD  WATCH  ,  AT   LEAST,  4  WEEKS  FIGURES  /  CONSISTENCY.

=======================================================



AFTER  ONE  WEEK , THE  ACTUAL  SALES  TO  FORECASTED  SALES  , THE  RATIO  IS

-mumbai---80%
-chennai----125%
-lucknow—75%
-delhi----150%
-kolkata----60%

THIS  IS  JUST  ONE  WEEK   PERFORMANCE.

THIS  PERFORMANCE  MAY  BE  DUE  TO  THE  EFFECT  OF  MANY  VARIABLES
-load  available
-poor  handling
-low  demand
-transport  problem
-economic  problem
Etc  etc.

HENCE,  THERE  IS  NO  TREND   AVAILABLE  TO  MAKE/ REVISE  THE  FORECAST.

WE  NEED  MINMUM  4/6  WEEKS   TREND  TO  MAKE  CHANGED  ON  THE  FORECAST.

THE  SEVEN   FIGURES  ARE  FORECAST./NOT ACTUALS.

THE  ACTUAL   AVAILABLE  IS  FOR  ONE  WEEK  ONLY.
#########################



CASE-3 (16 Marks)
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.
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[SEE   THE  ATTACHED  CHART ]


I CANNOT  FIT  HERE  THE  CHART DUE TO  SPACE CONSTRAINT.
PLEASE  FORWARD  THESE    QUESTIONS  TO  MY  EMAIL  ID   
leolingham2000@gmail.com.
I  will send  ALL the  ANSWERS   asap.
Regards
LEO  LINGHAM





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Leo Lingham

Expertise

management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc

Experience

18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

PLUS

24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc

Organizations
PRINCIPAL -- BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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