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Title: Meter Purchase Allocation Program
Author: Ralph C. Stanford
Source: American Gas Association 1986
Year Published: 1986
Abstract: In 1985, Southern California Gas Co. revised its method of allocating gas meter purchases among suppliers. This paper explains the modified Meter Purchase Allocation Program. The improved sysiem is designed to benefit meter suppliers as well as the Gas Company. At its core is a formula that assigns relative values to performance achievements. The new program improves on the formula-based system instituted in 1983 by assuring that each performance achievement has a proportionate impact on the number of meters we buy from a supplier. The Meter Performance Allocation Programs goats are to: Assure the long-term viability of meter suppliers Encourage and reward superior performance Stimulate and promote competitive pricing It is important to remember that the new program is still basically a tool for managements use in allocating meter purchases. Gas Company management may find it necessary to deviate from the formula when exceptional conditions warrant.

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