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Facquier Gas Company - Case Study Example

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Summary
In response to the increasing demand for energy, Facquire Gas Company has to implement changes that will accommodate the supply…
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Facquier Gas Company
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Facquier Gas Company

Download file to see previous pages... These specifications are designed to accommodate the gas flow which should start flowing in September. Thus, in this case there are two variables for consideration and require the company to act fast so that it completes the installation of the pipes before September. Additionally, due to the increase in demand, the thickness of the pipe, which determines the volume of gas passing per unit time, has to be increased as well.
There are two problems with reference to the case of Facquier Gas Company. Firstly, in order to reflect the desired changes that will lead the company to acquiring more sales and supply to more customers, the company, through Mr. Murphy is burdened with the task of accommodating major lead times. This means that the supply of the required products will foreseeably experience some delays related to the fact that Facquier Gas Company’s orders would not be fitted in the schedules of suppliers. Additionally, from Mr. Murphy’s understanding, the company has formerly used different specifications for the pipes such as 3/8 inch while the current design uses 3/7 inch thickness. The length of the pipe in former specifications has been 35-45 feet in length. Eventually, the consideration of order the products within a short schedule is also faced with a constraint of lead time. This is the case with the wrapper and coal tar as one company supplying the coal tar s located at Philadelphia while he one to supply the wrappers is located in Atlanta.
a. To adapt the new design specifications as they are in order to meet the current demand and at the same time offset the time wastage the 3/8-inch pipes contribute for attracting regular standards’ inspections (Cowen, 2014).
b. The company should consider acquiring the products with the new specifications but consider choosing a different logistics channel offering quicker delivery packages. Although the quicker delivery will increase costs, it will ensure that ...Download file to see next pagesRead More
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