NMIMS – Operations Management-Mr Rajesh Kapadia booked a flight ticket online

Mr Rajesh Kapadia booked a flight ticket online

Operations Management

 

Q1 Mr Rajesh Kapadia booked a flight ticket online. During the flight he asked for Non- Veg. lunch and the air hostess could not offer the same due to shortage of Non Veg. lunch. Mr Rajesh was upset and blamed the airline for not giving good service to the passenger. He said that the operation has failed miserably and wanted to meet the captain. The captain met him and asked him politely whether he has specified his food option at the time of booking. Mr Rajesh answered negative. Captain informed the passenger that if options are not selected airline would offer the food which was available in the flight. Captain also explained that they uplift more veg. food and less non veg. food as non veg. cannot be consumed by everyone while veg. food is accepted by all in general. Please analyze this problem and answer the following:

  • Is airline right in not offering the Non Veg. food to the passenger?

  • Is passenger right in demanding his option?

  • What would be the remedial measures that airline can take to avoid such situation?

Q2 Calculate the ordering cost and inventory carrying cost from the following information:

The total number of orders placed by the company is 10,000 and has an average total of Rs.200 lac

  1. Purchase dept expenses 400000.00

  2. Warehouse rent 280000.00

  3. Warehouse staff cost 400000.00

  4. Obsolescence 120000.00

  5. Receiving cost 70000.00

  6. Inspection cost 100000.00

  7. Materials handling cost in warehouse 320000.00

  8. Collection cost 80000.00

  9. Bill payment expenses 150000.00

  10. Interest charges 14.5%

  11. Insurance charges 2%

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