Yamanote India Limited

Abstract

The case of the scooter manufacturer Yamanote India Limited deals with a logistical decision that has arisen primarily from commercial realities. In this instance, it is the issue of the octroi tax that goods have to pay when entering certain city limits. The case considers the secondary transport of the finished product (scooters) from the state branch office (Vapi in Gujarat) to dealers in Gujarat. The volumes of business at particular dealers and the current service norms have resulted in combining shipments to various locations in a truckload. Movement of goods in and out of a city with octroi limits is possible, but the refined procedure is cumbersome. This has led the branch manager to route his shipments so that the octroi location (Bhavnagar) is the last point on the tour. However, the branch manager also feels that this can be improved upon and would like to reassess his options.