Supply Chain

ATO KUMANU EWUSI-MENSAH

SUPPLY CHAIN MANAGEMENT

CJ INDUSTRIES AND HEAVEY PUMPS

The CJI Company Wants to approve their capability of providing the required items for the Great Lakes boats company, in order to increase their incomes, $10 million a year, and to get the long-term follow-on potentials as well. It will do that through the contract signed with it.

The CJI has a problem of providing the required quantity of bilge pumps and the purchasing manager who put the contract together with Great Lakes faces three solutions we will see them in the incoming sections.

How the CJI Company can supply 50 pumps per month for the Great Leak Company.

1. What are all the issues here, from both CJI’s and Heavey’s perspectives, that need to be researched by Mr. Ashby?

From the CJI’s perspective MR. Ashby has to discuss their ability to provide the whole required quantities from all the items which The Great Leak Company requested.

From the Heavey’s perspective he has to discuss the ability of Heavey Company to provide the required quantity pumps with the required quality on time.

2. Should CJI continue to use Heavey to supply pumps, should they make them in-house, should they consider one of the other suppliers, or should they do some combination of these alternatives? Discuss the advantages, disadvantages, and risks of each of these alternatives.

The Alternative solutions which CJI Have Are:-

1- Continue to use Heavey to supply pumps.

2- Make them in-house.

3- Consider one of the other suppliers.

Details

Continue to use Heavey to supply pumps.

The cost of every pump is

Manufacturing $1,490 per unit

Delivery $10 per unit

The require quantity is 50 units per month

The total cost will be = 50 X $1,500 = $75,000 per month

Advantages:

A reliable supplier.

Disadvantage:-

1-The issue with Heavey Pumps was whether or not they could guarantee delivery of 50 pumps per month to one of the CJI warehouses.

2-There were...