CJ INDUSTRIES
Aravind Uppala 122
Dasari Pradeep 126
Sangam Lalsiva Raju 138
Rajesh 151
Rahul Gupta 161
MS. STANLEY
From Caolinn’s perspective: Needs to researched on the performance of Caolinn’s
From CJI’s perspective: Make...
ALTERNATIVES
FIRST OPTION
 To buy from caolinn pumps

Advantages:
 They have a strong relationship
 They are committed ...
SECOND OPTION
 Make in-house

If purchased from Caolinn
Cost per unit per month ( $1500*50)=$75000 *12( 1year)= $900000
5...
COMBINATION OF BOTH ALTERNATIVES
Disadvantages
 Change in quality
 May they give it at right time or not
 As they are p...
HOW TO ASSURE THE CONTRACT
 Since CJI doesn’t have any clue about the future orders from Great

Lakes, it cannot order th...
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Cj industries supply chain management

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Cj industries supply chain management

  1. 1. CJ INDUSTRIES Aravind Uppala 122 Dasari Pradeep 126 Sangam Lalsiva Raju 138 Rajesh 151 Rahul Gupta 161
  2. 2. MS. STANLEY From Caolinn’s perspective: Needs to researched on the performance of Caolinn’s From CJI’s perspective: Make these pumps in-house  Mr. Heavy knew two other suppliers
  3. 3. ALTERNATIVES FIRST OPTION  To buy from caolinn pumps Advantages:  They have a strong relationship  They are committed and deliver the order by the time with quality Disadvantages:  Not sure about the ability or willingness of Caolinn to increase its production of the bilge pumps  The increase in cost ( labor, production cost) would increase the cost per unit so will CJI accept for it ?
  4. 4. SECOND OPTION  Make in-house If purchased from Caolinn Cost per unit per month ( $1500*50)=$75000 *12( 1year)= $900000 5 years = $4500000 If made in house Initial investment ($500,000) Three employees assuming ($2000*3)= $6000 *12 ( 1 year) =$ 72000*5=$360000 =860000 + ram material, other costs ( thrice the initial investment and employees salary) $ 2580000 Total = $ 3080000 Made-Purchase = $ 3080000 - $4500000 = ($1420000 )
  5. 5. COMBINATION OF BOTH ALTERNATIVES Disadvantages  Change in quality  May they give it at right time or not  As they are present at longer distance transportation cost will be high and that increase the cost of unit RISK  I may loose the contract after 5 yrs because of wrong decision  I may loose a customer who will generate 30% of my sales later or sooner  I may loose my brand image
  6. 6. HOW TO ASSURE THE CONTRACT  Since CJI doesn’t have any clue about the future orders from Great Lakes, it cannot order the bilge pumps about 8 to 10 weeks ahead of production, it may happen to Caolinn that not able deliver the batch on time.  To meet the raise in demand due to additional contract business in the future from Great Lakes , Caolinn might refuse to bear the additional production costs.  So to assure the continued contract and additional business from

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