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Title: Centralized Inventory Management
Author: John S. Woods
Source: American Gas Association 1990
Year Published: 1990
Abstract: Centralized inventory control, including the use of a central storage and distribution facility and three pipe yards, is a profitable venture for the Gas Business Unit (GBU) of Public Service Electric & Gas Company. For over 20 years, this materials management operation has resulted in lower material costs, more economical inventory levels, higher turnover ratios, better material availability, and improved quality control. Public Service Electric & Gas (PSE&G) is a combination gas and electric utility serving 72 percent of New Jerseys population in a territory of Over 2,500 square miles. We have 3.2 million customers with approximate revenues of 4.8 billion. The Gas Business Unit (referred to as GBU) serves 1.4 million residential, commercial, and industrial customers in a territory that serves the area between New York City and Philadelphia. GBU operations is organized into three regions and 13 districts. Although the districts vary in size, an average one serves 191,000 customers, has 188 employees, an annual usage of general stores materials equalling 1.7 million, and an average inventory of approximately 400,000.

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