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This case focuses on the issue of additional fleet acquisition by Ispaat Parivahan Limited (IPL) for its contract obligation fulfilment with Solid Steel Limited. As per contract, IPL was to transport overall 15,000 tons per month (tpm) till July 31, 2015 to the North and West. But IPL failed to uphold its part of the contract and fell short of the target for the North. IPL could transport only 12,800 tpm, leading to a penalty payment. To avoid this, the company proposed acquisition of more fleet. One of the issues was additional time due to return loads. The Board wanted IPL to assess scenarios with and without return loads.
Keywords:
Fleet Optimization,
Return Load,
Trucking,
Logistics,
Steel Industry,
Manufacturing,
Large
© 2015 by the Indian Institute of Management, Ahmedabad
2015
Indian Institute of Management, Ahmedabad
Licensed re-use rights only. Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for classroom discussion. They are not designed to present illustrations of either correct or incorrect handling of administrative problems.
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