Management

Assignment Instructions
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 classroom – Case Study #1.

I ATTACHED THESE 3 ON FILE
1)Case Study 1

2)Case Study Outline (see Outline for Case Analysis below)

3)Grading Rubric

OUTLINE FOR CASE ANALYSIS
Title Page (APA formatted)
Case Name:
I. Major Facts
(State here the major facts as you see them. Make statements clear and concise for your own understanding as well as for the understanding of the other students and the instructor.)
II. Major Problem
(State here the major problem as you see it. Emphasize the present major problem. You may wish to phrase your statement in the form of a question. In a few cases, there may be more than one major problem. A good problem statement will be concise, usually only one sentence.)
III. Possible Solutions
A. (List here the possible solutions to the major problem. Let your imagination come up with alternative ways to solve the problem.
B. Do not limit yourself to only one or two possible solutions. These solutions should be distinct from each other.
C. However, you may wish to include portions of one solution in another solution, as long as each solution stands alone. Only in this manner will your subsequent choice be definitive.
D. Briefly note advantages and disadvantages of each possible solution.)
etc.
IV. Choice and Rationale
(State here your choice, A or B or ___ and the detailed reasons for your choice. You may also state your reasons for not choosing the other alternative solutions.)
V. Implementation
(Prepare a plan to implement your choice)
Appendix (Answer case study questions)
Reference Page (APA formatted)

 ANSWER

CJ Industries and Heavy Pumps

Major Facts

CJ Industries was awarded a five-year deal to supply of various major engine features of boats (Wisner, 2014). The main focus is the major features for the luxury cruisers. CJ industries had this great chance that would bring future contracts. Therefore, this contract marked an essential landmark for CJ industries since it offered a chance to reveal their great capability to Great Lakes to become an essential alliance partner.

Heavy pumps built the Bilge bumps according to the provisions that were given by Great Lakes and stored at the warehouse for CJ can later install the pump with regards to the needed basis. The association amid Heavy Pumps and CJ was not on any deal but only had consistent order on a reoccurring basis. The contract demanded extra pumps that were to be manufactured as well as provided by Heavy pumps.  The heavy pump was manufacturing as well as distributing 50 bilge pumps monthly at $1500 per unit. Heavy pumps delivered the pumps without disruptions.

Major Problems

There were more demands for bilge pumps that were needed at the start of July, which means that Great lakes would require more than 50 pumps every month (Wisner, Tan and Leong, 2014). This would depend on the consumer demand of the company and the capability of CJI industries to perform what was demanded during the contract. Therefore, there are some uncertainties in the willingness and capability to meet bilge pumps demand. CJ industries are uncertain about the delivery of new bilge pumps of more than 50 pumps monthly since a delay will risk their capability to sufficiently accomplish the crucial deal with Great lakes.

Possible Solutions

One of the possible alternatives would be CJ having the bilge pumps manufacture in their strategy to ramp up their production (Wisner, Tan and Leong, 2014). This will ensure that they satisfy the increase in demand. The core motive for adopting this alternative would be to safeguard their contract and ensure effective performance, even with the increase in demand. Adopting this solution will lower the shipment cost and avoid risking the deal. However, the disadvantage of this alternative is that CJ will have an extra cost while establishing the production of bilge pumps.

Another potential alternative would be to inform Heavy pumps about the upsurge in the request, confirm the willingness, and satisfy the escalation in the request for the pumps. If Heavy pumps guarantee supply for the pumps despite the increase in demand, then the company will not have to inject the capital for the production of Bilge pumps (Wisner, Tan and Leong, 2014). Considerably, heavy pumps already have the equipment for manufacturing bilge pumps and have been dependable contractors for the few supplies. The disadvantage of this solution is that CJI might be unwilling to incur the additional cost of equipment, labor as well as other manufacturing costs.

The other most suitable alternative would be to contract other manufacturers of bilge pumps to meet the increase in demand. Ideally, this solution will enable the company to meet the increase in demand without experiencing additional costs in manufacture. However, the main disadvantage of this solution is that CJI has no previous performance records, and thus this alternative may affect the contract.

Choice and Rationale

An effective supply chain allows a firm to quickly supply products to the end user efficiently and a relatively low cost (Burt, Petcavage and Pinkerton, 2010). After evaluating all the best alternatives for CJI to increase production that will satisfy the demand, ramping up their production is the most suitable solution. Even though this would translate to an increase in capital, it will lead to a long term financial benefit that will guarantee the ability of CJI to comply and satisfy the Great Lakes contract.  The limitations of assuming the other two alternatives are that there would still be improbability in maintaining reliable performance.

Implementation

The procedure of executing this solution needs to commence in October 2007 when the deal was endowed to maintain the performance. CJ industries ought to obtain the necessary additional equipment as well as the associated labor in the production of bilge pumps.

Appendix Questions

1. The concerns that need to be discussed include the cost-benefit analysis if CJ industries decide to ramp up the manufacture of bilge pumps in their production. Another issue is the willingness and capability of the Heavy pump to meet the extra demand.
2. CJI needs to start producing the bilge pumps. Considerably, the benefit is that they are guaranteed supply and quality, which are essential to maintaining their contract. The shortcoming would be the additional cost that would be earned in acquiring the necessary equipment and ramping up production. Selecting the use of heavy pumps would prevent extra costs for CJ industries. This will ensure the quality of bilge pumps due to their capability. The main drawback is the rise in delivery costs and improbability to meet the demand, which might risk the contract. Deciding to select one or both suppliers would also facilitate meeting the demands without incurring extra costs. However, lack of performance record and delivery costs will risk the deal compliance. Combining the solutions will assure satisfaction since the extra costs will be incurred simultaneously with the manufacturing cost where a possible solution will be met. This will increasingly lower the expected financial costs for the deal.
3. CJI can guarantee sustained compliance through better performance, meeting the company’s demands, and guaranteeing the safety and quality of products offered. This compliance can only be guaranteed by expanding the CJ industry’s production and increasing their quality of bilge pumps.

References

Burt, D. N., Petcavage, S. D., & Pinkerton, R. L. (2010). Supply management. New York, NY: McGraw-Hill.

Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A balanced approach. Cengage Learning.

Wisner, J.(n.d) (2014). Supply Issues: CJ Industries and Heavey Pumps. University of Nevada, Las Vegas.