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Case Study 1:
Bloomsday Outfitters produces T-shirts for road races. They need to acquire some new stamping machines to produce 30,000 good T-shirts per month. Their plant operates 200 hours per month, but the new machines will be used for T-shirts only 60 percent of the time, and the output usually includes 5 percent that are "seconds" and unusable. The stamping operation takes 1 minute per T-shirt, and the stamping machines are expected to have 90 percent efficiency considering adjustments, changeover of patterns, and unavoidable downtime.

Question: How many stamping machines are required?

Case Study 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 is now looking to expand his business and has decided to venture into the road transportation business between Chennai and Mumbai.

Target Stamping Calculation

- Target stamping: 30,000 units
- Limiting Factor: Machine availability time - 200 hours * 60% = 120 hours per month.

Practical Stamping Capacity

- Practical stamping capacity: 120 hours * 60 minutes * 90% (efficiency) * 95% (good units) = 6,156 units

Machines Required

- Machines required: 30,000 / 6,156 = Approximately 5 machines

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company. He did very well in the first four years. He is now looking to expand his business and has decided to venture into road transportation between Chennai and Mumbai, and Mumbai and Delhi, as he feels he could succeed in this line. However, before making a final decision, he has hired your Management Consultant firm. He has requested you to determine 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 covering all expenses.

Market Conditions Analysis

Your analysis of the market conditions reveals the following:
- Vehicle cost: Rs 7 lacs
- Depreciation: 15%
- Maintenance costs per day: Rs 150
- Driver's monthly salary: Rs 5000
- Attendant's monthly salary: Rs 3000
- Miscellaneous expenses: Rs 200 per day
- Driver allowance: Rs 125 per day
- Attendant allowance: Rs 75 per day
- Diesel cost per liter: Rs 25
- Vehicle mileage: 4 km per liter
- Financial institutions offer loans at 10% interest per annum, which Ramjee has been negotiating

On 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 a rest day in Mumbai only for one day after returning from any trip.