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TrueSave is a mail-order company that ships electronic

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TrueSave is a mail-order company that ships electronic [#permalink] New post 16 Nov 2008, 05:57
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

83% (01:46) correct 17% (01:39) wrong based on 18 sessions
TrueSave is a mail-order company that ships electronic products from its warehouses to
customers worldwide. The company’s shipping manager is proposing that customer
orders be packed with newer, more expensive packing materials that virtually eliminate
damage during shipping. The manager argues that overall costs would essentially remain
unaffected, since the extra cost of the new packing materials roughly equals the current
cost of replacing products returned by customers because they arrived in damaged
condition.
Which of the following would it be most important to ascertain in determining whether
implementing the shipping manager’s proposal would have the argued-for effect on costs?
A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products
B. Whether electronic products are damaged more frequently in transit than are most
other products shipped by mail-order companies
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping
D. Whether there are cases in which customers blame themselves for product
damage that, though present on arrival of the product, is not discovered until later
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers

..got this from another gmat forum...anyone has some good thougths?
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Re: cr [#permalink] New post 16 Nov 2008, 08:59
Hi guys,

I'd say C

OA?

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Re: cr [#permalink] New post 16 Nov 2008, 10:10
D.

If customers do not return damaged goods, manager's proposal fails.
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Re: cr [#permalink] New post 16 Nov 2008, 10:39
C for me as well.

If a lot of products have damage before shipping, manager's proposal will cost more.
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Re: cr [#permalink] New post 16 Nov 2008, 11:43
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TrueSave is a mail-order company that ships electronic products from its warehouses to
customers worldwide. The company’s shipping manager is proposing that customer
orders be packed with newer, more expensive packing materials that virtually eliminate
damage during shipping. The manager argues that overall costs would essentially remain
unaffected, since the extra cost of the new packing materials roughly equals the current
cost of replacing products returned by customers because they arrived in damaged
condition.

Which of the following would it be most important to ascertain in determining whether
implementing the shipping manager’s proposal would have the argued-for effect on costs?

The shipping manager's assumption is that the cause of electronic damage comes only from shipping. As a result, he proposes to use more expensive material. Had the damage come from a worker mishandling the electronics, the more expensive packing material does not solve the problem.

A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products
Eliminate: Out of scope. "Other electronic products".
B. Whether electronic products are damaged more frequently in transit than are most
other products shipped by mail-order companies
Eliminate: Out of scope. "Other mail order companies".
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping
My choice. If the items were already defective before delivery, there is another problem. Apply the YES/NO test. YES, the returned items are damaged prior to shipment. This weakens the argument. NO - the items were not damaged. The argument holds and the culprit is Fedex.
D. Whether there are cases in which customers blame themselves for product
damage that, though present on arrival of the product, is not discovered until later
Eliminate: Out of scope. We're not talking about what customers do. We're talking about said electronic company.
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers
Eliminate: This statement doesn't do anything to the argument. If the company doesn't monitor the quality assurance department (defects), continuously monitoring the shippers won't fix an existing problem.
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Re: cr [#permalink] New post 16 Nov 2008, 13:37
From my point of view, C
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Re: cr [#permalink] New post 16 Nov 2008, 18:30
Should be D. It is necessary to evaluate how many products were actually damaged. Whether customers making false claims? If yes then no need of damage proof packaging
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Re: cr [#permalink] New post 17 Nov 2008, 10:26
I would say C. plz share the OA as well.
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Re: cr [#permalink] New post 17 Nov 2008, 10:48
A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products [Hold]
B. Whether electronic products are damaged more frequently in transit than are most
other products shipped by mail-order companies [other products are not discussed as part of the argument. Moreover, if the products are not damaged at the rate that Manager mentions, then this choice has less relevance]
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping [This may have effect on the Manager’s decision, but not once the decision has been implemented]
D. Whether there are cases in which customers blame themselves for product
damage that, though present on arrival of the product, is not discovered until later [Irrelevant]
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers [Monitoring has no effect on the argument]

Answer: A
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Re: cr [#permalink] New post 17 Nov 2008, 13:29
Si.
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Re: cr [#permalink] New post 17 Nov 2008, 13:39
domleon wrote:
The manager argues that overall costs would essentially remain
unaffected, since the extra cost of the new packing materials roughly equals the current
cost of replacing products returned by customers because they arrived in damaged
condition.

Which of the following would it be most important to ascertain in determining whether
implementing the shipping manager’s proposal would have the argued-for effect on costs?

C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping


The manager is arguing that the cost of packing materials will go UP, but the cost of replacing products will go DOWN (offsetting each other). If the items are broken before they leave the warehouse, there isn't a packing material on the planet that's going to un-break them :)

The answer is C.
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Re: cr [#permalink] New post 17 Nov 2008, 23:23
The ans should be C definitely. The manager's proposal is effective only when the items are damaged during the shipping. but if the items are already broken, the we are only increasing the cost price by packing the damaged items with an expensive material. The items have to returned in any case.
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Re: cr [#permalink] New post 28 Feb 2009, 04:58
the assumption of the argument is: "good items are packed for shipping, and they get damaged after shipping, that is during transit".
A) A does not validate assumption - items may be vulnerable but what if shipping agency takes extra care while handling it.
B) does not substantiate assumption, answers only 50% of truth - more electronic products may get damaged in transit, but we want to know whether they are damaged before packing them for shipping, and what is the propotion of the goods that is damaged in transit and the goods that is already damaged before packaging it?
C) substantiates assumption in correctly in proper form
D/E) irrelevant
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Re: cr [#permalink] New post 15 Apr 2011, 09:04
The answer is C.
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Re: TrueSave is a mail-order company that ships electronic [#permalink] New post 19 Jan 2012, 16:15
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I am also for C.

That manager wanted to reduce costs by investing on advanced packing technology. So, here the assumption is - items were in good condition during package but got damaged during transit. if items were already in damaged condition at the time of packing, no matter how much care the company takes for transport, customers are going to return them which ultimately increases the cost.
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Re: TrueSave is a mail-order company that ships electronic   [#permalink] 19 Jan 2012, 16:15
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