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 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.
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