Fauquier Gas Company Case Study

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FAUQUIER GAS COMPANY CASE STUDY The key facts are, Bill Murphy, manager of supply management for the Fauquier Gas Company, and he is responsible for the purchasing of materials used in distribution of gas such as pipes, meters, and fittings as well as other various materials. Fauquier Gas Company is scheduled to start a new project to turn an area once used for agricultural work into a residential and commercial property. The supply organization of the gas company was under the management control of the vice-president for operations. The problem is, Fauquier Gas Company is scheduled to start a new project to turn an area once used for agricultural work into a residential and commercial property. This requires new gas lines to be installed. Mills needed substantial lead times in order to accommodate Fauquier Gas Company's timeline. The purchase request will be sent as soon as the design engineer was finished with the specifications and the project engineer approved it, both work areas fall under the vice-president of operations. Fauquier Gas Company needs to acquire 3.5 miles worth of large diameter pipe for a residential and commercial development. To meet the increased demand the 3.5 miles of new pipe must be installed by September. Specifications are 24 inches with a wall thickness of 3/4 inches and that the length would be 57 feet. However, in previous purchases, the wall thickness was 3/8 inches and the length was “random double normal” (40 feet plus or minus 5 feet). The specifications of the pipes being ordered were changing from past orders. Instead of 3/8" wall thickness they were drawn at 3/4". An inquired about the change in wall thickness and length, showed that the operation of the line would be governed by less stringent specifications if the wall thickness was 3/4 inches. The length of the pipes was also extended from

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