Captain Fresh is planning to buy vehicles for the transportation of materials from procurement source to...

 

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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? 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?

Answer rating: 100% (QA)

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... View the full answer