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- Statement: The company 'X' has rejected first lot of values supplied by company 'A' and has cancelled its entire huge order quoting use of inferior quality material and poor craftsmanship.
Question 1:
Statement:The company 'X' has rejected first lot of values supplied by company 'A' and has cancelled its entire huge order quoting use of inferior quality material and poor craftsmanship.
Courses of action:
I. The company 'A' needs to investigate functioning of its purchase, production and quality control departments.
II. The company 'A' should inspect all the values rejected by company 'X'.
III. The company 'A' should inform company 'X' that steps have been taken for improvement and renegotiate schedule of supply.
A. All I, II and III
Feedback As in the statement it is mentioned 'rejection due to inferior quality material and poor craftsmanship', it is well known that purchase dept is responsible for purchasing the inferior quality material. Again production dept is responsible for improper inspection. Hence investigation is compulsory for all the departments. Hence I follows. II follows because claim of company 'X' may be wrong. III follows because relationships with a previous client should always be kept up.
B. Only I and II
C. Only II
D. II and either I or III
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