CJ Industries Bilge Pump Supply Chain Case Study
This case study examines CJ Industries' (CJI) supply chain dilemma following a five-year, $10 million annual contract with Great Lakes Pleasure Boats. The central challenge is whether CJI can reliably supply bilge pumps — currently sourced from Heavey Pumps — given uncertain supplier capacity, a tight implementation timeline, and a costly in-house production alternative. The paper evaluates four strategic options: continuing with Heavey Pumps as sole supplier, bringing production in-house, sourcing from untested alternative suppliers, or pursuing a combination approach. It recommends the combined strategy to diversify supply risk, avoid immediate capital outlay, and preserve the option of in-house production as a longer-term contingency.
- Major Facts: Key facts about CJI's contract and supply situation
- Major Problem: Central supply chain and capacity challenge defined
- Possible Solutions: Four sourcing options evaluated with trade-offs
- Choice and Rationale: Combination strategy selected and justified
- Implementation Plan: Phased steps for executing the chosen strategy
- Appendix: Research Issues and Risk Summary: Research needs and risk analysis by option
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What makes this paper effective
- The structured case-study format — facts, problem statement, solutions, rationale, and implementation — makes the argument easy to follow and mirrors professional business decision frameworks.
- Each solution is evaluated with explicit advantages and disadvantages, demonstrating balanced analytical thinking rather than advocacy for a single answer without evidence.
- The implementation section moves beyond abstract recommendation by specifying concrete sequential steps: supplier negotiation first, parallel market research second, and long-term in-house planning third.
Key academic technique demonstrated
The paper employs a comparative options analysis technique common in operations and supply chain management courses. By isolating four discrete strategies and systematically weighing their trade-offs before selecting and defending one, the author shows how academic frameworks (such as single versus multiple supplier sourcing, as cited from Burke et al., 2007) can be applied directly to a real business scenario.
Structure breakdown
The paper opens with a numbered fact summary grounding the reader in context, then defines a single focused problem statement. Four solutions follow in labeled sections (A–D), culminating in a justified recommendation. The implementation section translates that recommendation into phased actions. An appendix consolidates research questions and risk considerations, reinforcing the recommendation with additional analysis.
Major Facts
Major Problem
Can CJI fulfill the increased demand for bilge pumps as part of their contract with Great Lakes while maintaining cost-efficiency and quality? This question is complicated by the uncertain capability of their current supplier, Heavey Pumps; the significant investment required for in-house production; and the potential risks of utilizing untested suppliers.
Possible Solutions
A. Continue with Heavey Pumps as sole supplier. This option has the clear advantage of avoiding capital investment in new production facilities while maintaining a pre-existing business relationship. However, the disadvantage lies in the uncertainty around Heavey's capacity to meet increased demand. It is also possible that Heavey would want to renegotiate contract terms given the higher volume, leading to potential cost increases.
B. Move bilge pump production in-house. This would grant CJI full control over pump production, providing assurance of meeting the increased demand. However, the disadvantages are significant. First, it would require a large capital investment of approximately $500,000. Second, the timeframe for getting the production line operational is tight, with only about nine months remaining before the contract start date. Third, CJI lacks pump manufacturing experience, which may lead to unforeseen challenges in the production process (Zhang et al., 2021).
C. Utilize alternative bilge pump suppliers. This could potentially meet the increased demand without requiring CJI to invest in new production facilities. The downside is that these suppliers are located much farther away, which would result in higher delivery costs. Moreover, since CJI has never worked with these suppliers before, there is a risk associated with the quality of their pumps and their reliability in meeting delivery schedules.
D. Pursue a combination of the above solutions. This would involve CJI diversifying its supply chain by sourcing pumps from both Heavey Pumps and alternative suppliers, while also planning for potential in-house production. The advantage of this approach is that it reduces the risk of supply chain failure by not relying on a single supplier (Burke et al., 2007). By diversifying suppliers, CJI also has the opportunity to meet increased demand without needing to immediately invest in new production facilities. However, managing multiple suppliers could result in a more complex supply chain that is difficult to administer, and potential cost increases may arise from managing multiple supply relationships alongside any capital investment for in-house production.
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