CAT 2020 Quant Based LR — Previous Year Question

Statement: Company X has rejected the first lot of valves supplied by Company A and has cancelled its entire huge order, citing use of 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.