Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Captain Fresh is planning to buy vehicles for the transportation of materials from procurement source to demand locations. They are thinking to reduce costs

 

Captain Fresh is planning to buy vehicles for the transportation of materials from procurement source to demand locations. They are thinking to reduce costs by using these vehicles rather than depending on third party vehicles. Kindly find the total trips CF is doing regularly with third party vehicles. Source Eluru Eluru Eluru Nellore Nellore Nellore Nandhyala Nandhyala Nandhyala . Destination Mumbai Bengaluru Hyderabad Mumbai Bengaluru Hyderabad Mumbai Bengaluru Hyderabad One side-Kms 3PL Vehicle rate Monthly Trips 70000 30000 20000 72000 1050 800 350 1100 810 300 950 740 300 32000 22000 75000 29000 23000 13 15 10 15 15 6 246 Days required for round trip 5 Assume every truck is diesel and mileage are 5 uniformly. Assume no tolls in the journey. Assume CF will buy the truck on 1 January 2024. 3 25325 3 2 Cost of the chassis of the Truck will come around 20 Lakhs (including GST) and the body building will come cost around 20%. CF will pay the full amount. Annual Maintenance charge will come around 5% of the total cost of the truck and will increase by 1% of the initial cost yearly. Depreciation is 10% and the insurance amount will be 0.8% of the value of the truck. CF will use the trucks for 5 years and sell it for 25% of the value of the truck after 5 years. Two drivers will be required for each truck. Basic salary will be 25000 per month and salary increment is semi-annually by 7% Three logistic executives also must be hired. Salary will be 20000 per month and the salary increment is 3% quarterly. Calculate how many trucks would be required and help CF to decide whether they go with the plan or not?

Step by Step Solution

3.47 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Answer To determine how many trucks Captain Fresh CF would require and whether they should proceed with their plan to buy vehicles for transportation we need to calculate the total cost of ownership f... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: David Besanko, Ronald Braeutigam

5th edition

1118572270, 978-1118799062, 1118799062, 978-1118572276

More Books

Students also viewed these General Management questions

Question

How would you manage in a polyphonic organization?

Answered: 1 week ago

Question

Describe how to distinguish needs from wants.

Answered: 1 week ago

Question

Solve the following the equation. 8-0.5(x+3)=0.25(x-1)

Answered: 1 week ago

Question

Solve the following the equation. x- 0.025x=341.25

Answered: 1 week ago