Q120
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 valves 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.
Only I and II follow
AnswerB.
Only II follows
C.
II, and either I or III follow
D.
All I, II and III follow
E.
None of these
Answer: Option A
Solution
Answer: Option A
Solution:
First of all, company A should inspect the rejected valves to ensure if they are really sub-standard. If yes, it should scrutinise its working thoroughly and remove its lackenings, be it in the quality of raw material or craftsmanship. So, both I and II follow. III seems to be a far-off action which can be implemented only after the first two steps are put into practice. Thus, III does not follow,