Question

Dhawan Ltd., the purchase department purchased 2000 tonnes of plastic for production of "Water guns" before Holi festival ignoring the requisition of 1500 tonnes placed by production department. As a result, there was overproduction of 'water guns'. The extra water guns were not accepted by the sales department, consequently extra water guns remained unsold. (a) Identify the aspect of management lacking in the above situation. (b) Explain any two situations when need for this aspect of management arises.

Answer 1

The extra water guns were not accepted by the sales department, consequently extra water guns