Disposal of rejected product, Business Management

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The product which is rejected in final inspection represents a direct loss to the manufacturer. Therefore most companies have a system of review of the rejected product. This review is generally carried out by a committee comprising representatives of production and Quality departments which takes decisions on the followings issues.

a. Quantity of stores to be accepted for sale as second quality.

b. Quantity of stores to be salvaged by rectification or repair.

c. Stores to be finally scrapped.


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