A distributor has 300 retailers and a turnover of Rs 1,00,00,000 per month. 

  The manufacturing company he partners with has very strictly told him to keep an appropriate number of vehicles and salesmen using the following calculation: 

A salesman can cover 20 retailers per day, and a delivery vehicle can deliver to 15 retailers per day. The coverage pattern is as follows:

  50 'A' class store- Weekly coverage

 100 'B' class stores- Fortnightly coverage

 150 'C' class stores- Monthly Coverage

 

For every vehicle, he would require to employ 2 delivery boys.

 The distributor wants to figure out if he employs the appropriate number of salesmen and delivery vehicles, what would his ROI be. The following is the cost that a vehicle and a salesman requires:

 Vehicles rent- Rs 30000/vehicle/month

 Salesman's salary- Rs 15000/salesman/month

 Delivery boy's salary- Rs 10000/delivery boy/month

 

  Following are the other details required to calculate his ROI:

 His gross margin is 5%

 His other expenses are as follows:

 Warehouse Rent- Rs 10000/month

 1 Warehouse Manager salary- Rs 25000/month

 1 IT/Accounts Manager salary- Rs 30000/month 

 Fuel Cost- Rs 20000/month

 Miscellaneous Other Expenses- Rs 10000/month

 The average inventory is Rs 30,00,000

 Credit given to market is 15 days

 He spends Rs 50,000 on schemes in the market per month.

Your objective is to first calculate how many salesmen and delivery vehicles are required as per the calculations provided by the company, and then calculate the ROI for this distributor

Answer rating: 100% (QA)

Calculation of the number of salesmen and delivery vehicles required A class stores Number of A clas... View the full answer