CJ Industries and Heavy Pumps Case Study Assignment (Case Study Sample)
The case study link is provided below for the Case Study 1. Read and study the case and complete the questions at the end of the study. Use the case study outline below to assist you with your analysis. Questions should be answered using case study format. Ensure that you adequately explain the problem, describe alternative solutions and justify your recommendation. This exercise should be able to be completed in approximately 3-6 doubled space pages. Attached completed Case Study #1 as a MS Word document in the assignment area of the classroomsource..
CJ Industries and Heavey Pumps
Background of the Case
In this case, study, the CJI Company intends to approve its capability by supplying pumps to Great Lakes Boat Company. Through this contract, the company income will increase by $10 million in a year and hope for a long-term engagement with the company. The problem with the CJI is how to provide the required quantity of bilge pumps; the purchasing manager needs to explore several options. Mr. Ashby needs to research to get information that will enable them to estimate the amount needed to sustain the contract. He needs to understand some of the potential challenges and decide whether to continue supplying or not. In this case, Mr. Ashby needs to conduct a cost benefit analysis if CJI intends to increase production, including bilge pumps as part of their production or simply work with a pump supplier.
The main challenges are how CJI Company can supply 50 pumps every month as requested by Great Lakes Company. There will be potential additional costs of equipment, labor, and other production related cost that Heavey will incur due to extra demand for bilge pumps, including delivery costs. Heavey is a reliable supplier for CJI for several years, but the company has not purchased any other equipment from the company. The demand for these pumps is low and the company delivers them occasionally. There is little performance records to prove its past performance, the unknown quality history for Heavey Bilge pump supplies is a challenge.
The company can decide to increase production and improving on their inventory. The company should focus on creating a pump production section by training specific employees to meet its new demand; this could be part of its future investment (Yawar & Seuring, 2017). The second option is to negotiate with Heavey Pumps to give them a better offer that will generate better revenues since the reason why Heavey did not want to suppl
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