CJI has three options that can help them in fulfilling their contractual obligations with Great Lake. The initial option is to keep coping with Heavy Pumps (H . p .). The second option is to start creating pumps within-house investment of $.5 million, as well as the third option is to acquire pumps from two other producers that are situated roughly 500 miles from CJI.In case CJI continues coping with H . p ., it requires to ensure that the business will have a way to provide extra volume of bilge pumps. The main advantage of pursuing this process is always that the business must face minimum risk as there is no record of complaints from Great Lake regarding HPs 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?