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Statement: Company X has rejected the first lot of values supplied by Company A and has canceled its entire huge order, using inferior quality material and poor craftsmanship.
Courses of Action :
I. Company A needs to investigate the functioning of its purchase, production, and quality control departments.
II. Company A should inspect all the valves rejected by Company X.
III. Company A should inform Company X that steps have been taken for improvement and renegotiate the schedule of supply.
  • a)
    Only I and II follow
  • b)
    Only II follows
  • c)
    II, and either I or III follow
  • d)
    All I, II, and III follow
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Statement: Company X has rejected the first lot of values supplied by...
First of all, company A should inspect the rejected valves to ensure if they are sub-standard. If yes, it should scrutinise its working thoroughly and remove its lacking, be it in the quality of raw material or craftsmanship. So, both I and II follow. III seems to be a far-off action that can be implemented only after the first two steps are put into practice. Thus, III does not follow.
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Statement: Company X has rejected the first lot of values supplied by...
Statement: Company X has rejected the first lot of values supplied by Company A and has canceled its entire huge order, citing inferior quality material and poor craftsmanship.

Courses of Action:
I. Company A needs to investigate the functioning of its purchase, production, and quality control departments.
II. Company A should inspect all the valves rejected by Company X.
III. Company A should inform Company X that steps have been taken for improvement and renegotiate the schedule of supply.

Explanation:
To determine which courses of action follow the given statement, we need to analyze each option.

I. Company A needs to investigate the functioning of its purchase, production, and quality control departments.
This course of action is a logical step for Company A to take. By investigating the functioning of its purchase, production, and quality control departments, Company A can identify any potential issues or shortcomings that may have led to the rejection of the valves by Company X. This investigation will help Company A to address the underlying problems and ensure that such issues are not repeated in the future. Therefore, this course of action follows.

II. Company A should inspect all the valves rejected by Company X.
Inspecting the valves rejected by Company X is necessary for Company A to understand the specific reasons for the rejection. By inspecting the valves, Company A can identify any manufacturing defects, material flaws, or craftsmanship issues that may have contributed to the rejection. This inspection will provide valuable insights for Company A to improve its production processes and ensure better quality control. Therefore, this course of action follows.

III. Company A should inform Company X that steps have been taken for improvement and renegotiate the schedule of supply.
Informing Company X about the steps taken for improvement is crucial to rebuild trust and confidence. By communicating the measures taken to address the quality issues, Company A can assure Company X that it is committed to rectifying the problem and preventing similar issues in the future. Renegotiating the schedule of supply allows both companies to come to a new agreement that considers the improved quality control measures implemented by Company A. Therefore, this course of action follows.

Conclusion:
Based on the analysis, it can be concluded that all three courses of action follow the given statement. Company A needs to investigate its departments, inspect the rejected valves, and inform Company X about the improvements and renegotiate the supply schedule. Therefore, the correct answer is option 'D' - All I, II, and III follow.
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Statement: Company X has rejected the first lot of values supplied by Company A and has canceled its entire huge order, using inferior quality material and poor craftsmanship.Courses of Action :I. Company A needs to investigate the functioning of its purchase, production, and quality control departments.II. Company A should inspect all the valves rejected by Company X.III. Company A should inform Company X that steps have been taken for improvement and renegotiate the schedule of supply.a)Only I and II followb)Only II followsc)II, and either I or III followd)All I, II, and III followCorrect answer is option 'A'. Can you explain this answer?
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