CJI has three alternatives that can facilitate them in meetingthe contract’s requirements with Great Lake. The first alternativeentails keep on partnering with Heavy Pumps (HP). The second alternative involves the initiation of the manufacture of pumps with internal funding, and finally, the third alternative involves the purchase of pumps from two different producers whose site is around 500 miles away from CJIs location.
If CJI chooses to maintain its partnering with HP, it will have to ensure that the firm has the capacity of delivering an excess of bilge pumps. The primarybenefit of opera ting for this alternative is that the company faces a very low risk because there have been complaints accounted for by Great Lakke relating to HP’s bilge pumps.
1. Please provide at least three suggestions (alternatives) on how CJI can get the extra number of bilge pumps necessary for the contact that they have already signed with their customer. Also, state the advantages and risks of each alternative you provide. Please state which of those alternatives you would like to recommend for CJI and why.
2. How can CJI assure continued contract compliance and additional contract business from Great Lakes in the future?