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
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
OUTLINE FOR CASE ANALYSIS
Title Page (APA formatted)
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
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.)
(Prepare a plan to implement your choice)
Appendix (Answer case study questions)
Reference Page (APA formatted)
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