Case Study

Part 2
Supply Issues

Case 1 CJ Industries and Heavey Pumps

Case 2 Credit Suisse: Sourcing IT Services

Case 3 Don’t Shoot the Messenger

Case 4 Early Supplier Integration in the Design of the Skid-Steer Loader

Case 5 John Deere and Complex Parts, Inc.

Case 6 Service Purchasing at the Sunny Hotel

Case 7 Supplier Development at Deere & Company

Case 8 A Supplier Partnering Agreement at the University of Las Vegas

Case 9 The VW Resende Modular Consortium

Case 10 Heartland & Company


1 CJ Industries and
Heavey Pumps1

In October 2007, CJ Industries (CJI) had just been awarded a 5-year contract with
Great Lakes Pleasure Boats amounting to U.S. $10 million per year, commencing in July
2008. CJI would be providing a number of key engine components for Great Lakes’ luxury
line of pleasure boats. The award marked an important milestone for CJI, in that it was
the culmination of several years of hard work and dedicated service, supplying Great
Lakes parts for their boats on an as-needed basis. The contract had significant long-
term follow-on potential as well, if they could continue to show Great Lakes they had
the capabilities to be one of their valued, alliance partners. In addition, with this contract
Great Lakes would represent approximately 30 percent of CJI’s annual sales, so perform-
ing adequately on this contract had a significant long-term financial impact on CJI.

One of the parts, a bilge pump, was an item that CJI had been purchasing from one
of their suppliers, Heavey Pumps, a small local specialty pump manufacturer, on an
informal, non-contract basis. The remaining items were all built in-house by CJI and
supplied to Great Lakes from one of their two finished goods warehouses located near
the Great Lakes production facilities. Heavey Pumps was producing and delivering
50 bilge pumps at a time at a cost of U.S. $1500 per unit and built to Great Lakes’ spe-
cifications, to one of the CJI warehouses, whenever an order was telephoned in by CJI.
The delivery costs (about U.S. $500 per 50 pump shipment, depending on the carrier
used) were included in the U.S. $1500 per unit price. This scenario typically occurred
about every four to six months. Normally, CJI would order another batch of 50 about
eight to ten weeks ahead of time, and Heavey had always been able to supply the
pumps before CJI’s stock was depleted.

Though CJI had sufficient excess capacity to ramp up production on the parts to be
supplied in the Great Lakes contract, they were not sure about the ability or willingness
of Heavey to increase their production of the bilge pumps. The new demand for bilge
pumps starting in July would be 50 pumps per month, and potentially more, depending
on Great Lakes’ demand, and the ability of CJI to perform on the contract.

There were a number of issues that Nik Grams, the purchasing manager who put the
contract together with Great Lakes, needed to work out with both Heavey and the pro-
duction manager at CJI, in order for this cont


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


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.)


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 alterative solutions.)

V. Implementation

(Prepare a plan to implement your choice)

Appendix (Answer case study questions)

Reference Page (APA formatted)

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.