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