In the following question, two statements are given each followed by two conclusions I and II. You have to consider the statements to be true even if they seem to be at variance from commonly known facts. You have to decide which of the given conclusions, if any, follows from the given statements.
Statements:
(I) Major companies are nowadays surviving because of the strong supply chain system.
(II) Supply chain comprises of logistics, retailers and distributors.
Conclusions:
(I) Retailers play most important role because they interact with customers on first hand.
(II) If an organization has strong logistics, then product can easily be available to the customers in such an era of competition.
Correct Answer :
Only Conclusion II follows
Solution :
The correct option is: Only Conclusion II follows.
To understand why this is the correct answer, let us analyze the given statements and evaluate each conclusion step-by-step:
Step 1: Analyze Statement (I)
"Major companies are nowadays surviving because of the strong supply chain system."
This statement establishes a direct link between the survival of major companies in the modern competitive environment and the presence of a strong, efficient supply chain system.
Step 2: Analyze Statement (II)
"Supply chain comprises of logistics, retailers and distributors."
This statement defines the key components that make up a supply chain. Specifically, it tells us that logistics, retailers, and distributors are the core pillars that constitute the supply chain system.
Step 3: Evaluate Conclusion (I)
"Retailers play most important role because they interact with customers on first hand."
While Statement (II) confirms that retailers are part of the supply chain, neither statement provides any comparative data or assertion to claim that retailers play the most important role. Since we must strictly rely on the provided facts without introducing outside assumptions, Conclusion I cannot be verified as true. Therefore, Conclusion I does not follow.
Step 4: Evaluate Conclusion (II)
"If an organization has strong logistics, then product can easily be available to the customers in such an era of competition."
Statement (II) establishes that logistics is a fundamental component of a supply chain, and Statement (I) emphasizes that a strong supply chain ensures survival in today's era. Logistics is responsible for the movement and storage of goods. Therefore, having strong logistics directly ensures that products are systematically and easily made available to customers, supporting the company's survival in a competitive market. Thus, Conclusion II logically follows from the premises.
Consequently, only Conclusion II follows.
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