1) Issues With CJI and Harvey1) Issues for CJI are:· The contract between CJI andGreat Lakes had been done but there is no discussion with heavey pumps for thislarge scale amount of production of bilge pumps.· No reports about the qualityhistory had been kept on Heavey pumps.· Heavey pumps cannot assure the guaranteeddelivery of bilge pumps of the required amount and quantity to CJI· CJI needs new Suppliers2) Issues for Heavey Pumps:· They need more equipment,labour, and other production costs for the surplus supply of bilge pumpsrequired by CJI.· Heavey pumps have a hugechallenge to the big contract so they need to be sure before going into thecontract with CJI· Due to extra labour and all thethings required for the new amount of production, heavey pumps need extra spacethat will change the production cost and selling cost of bilge pumps 2) a) Yes, CJI should continue to work withHeavey as they are pretty much reliable with the delivery, timing, quantity,price and other aspects of the production. This is the main advantage as theother suppliers may or may not be reliable as heavey pumps are.
b) yes, it is agreat option for the CJI to make pumps in-house. Though they may lack in the knowledgeof the production of the pumps but with 9 months in hand they can hire the3required people and can start the production. The main advantage of this isthat they can control the time, production, cost and quality themselves. Althoughthey need to clear out some space but still it is very good option for CJI.c) It’s not abad idea to get another supplier as they cannot totally depend on heavey pumpsto fulfill the production of the huge amount of pumps required.
But this may bea disadvantage in regard that if the other suppliers are reliable or not. Moreover,they have been using heavey pumps for some time and may not know if heaveypumps can really fulfill the amount of production required. So, they shouldgive a chance to heavey production.d) Combinationof these three could be beneficial for all of them as they can collaborate to perfumebetter and effective. For example, they can ask heavey pumps for 35-40 pumpsper month and 10 from the other supplier.
Meanwhile they can start their ownproduction to fulfill months requirement.