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.