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My GMAT exam is coming soon. So can you kindly rate my AWA essay. 


ESSAY QUESTION:The following memo was circulated by the management team of a retail company:

"We are very pleased to announce the relocation of our inventory, which had been located in four different warehouses throughout the country, to a single new warehouse near Company headquarters in Boston.  This consolidated location will cut the company's expenses for warehouse rent in half.  As a result we expect our monthly profitability to go up by this amount."

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.


RESPONSE:

The argument claims that the monthly profitability of the company is expected to go up because the company's expenses for warehouse rent will be cut in half. This would happen as a result of the relocation of the company's inventory, which had been located in four different warehouses throughout the country, to a single new warehouse near company headquarter. Stated in this way the argument reveals examples of leap of faith and poor reasoning. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is weak and has several flaws.

Firstly, the argument readily assumes that the amount of rent that would be saved due to relocation would directly be added into the profitability of the company. However, the argument fails to consider the other costs of relocation. For example, since the inventory would be located in one location instead of four, which were spread throughout the country, the transportation cost will increase as the goods and services would have to be carried from one location to the rest of the country. This would definitely cut down at least some profitability.

Secondly, the argument only consider rent costs and fails to consider other overhead costs such as maintenance costs, increase in employment etc. Unless these factor are included in the overall analysis of whether the net cost after the relocation would be higher than the net cost before relocation, one cannot surely claim that relocation would lead to profitability.

Finally, in the argument the entire basis for the decision of relocation of inventory was the amount of warehouse rent saved. The author readily assumes that whatever be the amount that will be saved due to a consolidated inventory would directly become the amount of profit done by the company. What about the other factors and consideration? What about transportation costs? Without some convincing answers to these questions, one is left with the impression that the claim more of a wishful thinking rather than substantive evidence. 

In conclusion, the argument is flawed for the above mentioned reasons and is therefore unconvincing. It could be considerably strengthened if the author clearly mentions all the relevant factors such as transportation costs, maintenance costs, etc rather than just comparing the warehouse rents and basing the entire analysis upon it. In order to assess the merits of a certain decision, it is essential to have full knowledge of all contributing factors. Without this information the argument remain unsubstantiated and open to debate. 

  • 1 Like   9 Comments
  • In the process buddy..not finalized on the date...please .... 14 Sep '15.
  • Will do for sure :smiley:. 14 Sep '15.
ayushmansurekha
Ayushman Surekha @ayushmansurekha 35

In the process buddy..not finalized on the date...please share your experience after your exam...will help aspirants like me..

wonderingsoul
Valar Morghulis @wonderingsoul 69

Will do for sure

My GMAT exam is coming soon. So can you kindly rate my AWA essay. 


ESSAY QUESTION:The following memo was circulated by the management team of a retail company:

"We are very pleased to announce the relocation of our inventory, which had been located in four different warehouses throughout the country, to a single new warehouse near Company headquarters in Boston.  This consolidated location will cut the company's expenses for warehouse rent in half.  As a result we expect our monthly profitability to go up by this amount."

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.


RESPONSE:

The argument claims that the monthly profitability of the company is expected to go up because the company's expenses for warehouse rent will be cut in half. This would happen as a result of the relocation of the company's inventory, which had been located in four different warehouses throughout the country, to a single new warehouse near company headquarter. Stated in this way the argument reveals examples of leap of faith and poor reasoning. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is weak and has several flaws.

Firstly, the argument readily assumes that the amount of rent that would be saved due to relocation would directly be added into the profitability of the company. However, the argument fails to consider the other costs of relocation. For example, since the inventory would be located in one location instead of four, which were spread throughout the country, the transportation cost will increase as the goods and services would have to be carried from one location to the rest of the country. This would definitely cut down at least some profitability.

Secondly, the argument only consider rent costs and fails to consider other overhead costs such as maintenance costs, increase in employment etc. Unless these factor are included in the overall analysis of whether the net cost after the relocation would be higher than the net cost before relocation, one cannot surely claim that relocation would lead to profitability.

Finally, in the argument the entire basis for the decision of relocation of inventory was the amount of warehouse rent saved. The author readily assumes that whatever be the amount that will be saved due to a consolidated inventory would directly become the amount of profit done by the company. What about the other factors and consideration? What about transportation costs? Without some convincing answers to these questions, one is left with the impression that the claim more of a wishful thinking rather than substantive evidence. 

In conclusion, the argument is flawed for the above mentioned reasons and is therefore unconvincing. It could be considerably strengthened if the author clearly mentions all the relevant factors such as transportation costs, maintenance costs, etc rather than just comparing the warehouse rents and basing the entire analysis upon it. In order to assess the merits of a certain decision, it is essential to have full knowledge of all contributing factors. Without this information the argument remain unsubstantiated and open to debate. 


Should present metal prices continue their sharp rise, the value of the copper in a penny will soon be greater than the face value of the coin.

213 people answered this question.
10 Comments
I am no expert.still preparing for GMAT  
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please suggest a good source to brush up verbal.

  • 5 Comments
  • not with me right now,albeit You can find a lot of materi.... 04 Sep '15.
  • manhattan sc. 05 Sep '15.
Piyushgandhi092
THIS IS SPARTA @Piyushgandhi092 208

not with me right now,albeit You can find a lot of material online, lot of sectional tests. Just post a question asking people for link, you will have certain replies. 

Consumers may not think of household cleaning products to be hazardous substances,but many of them can be harmful to health,especially if they are used improperly.  

225 people answered this question.
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If anybody has e-gmat course validity left and has given the gmat, please message me . I would be happy to buy it.

  • Hi..I have it and i am interested to sell. 17 Oct '15.
The best way is always through. 
srihitha
@srihitha

Hi..I have it and i am interested to sell

Please suggest a good book to practice para jumbles. I have very low accuracy in TITA types of Para Jumbles. I really need to work on them

  • word pandit n lofoya.com. 22 Aug '15.

Anyone Interested in Smart Cat Cracker,Please Message me on Pagalguy itself

Course Validity - January 2016

Hi I am planning to give GMAT next month. I want to write mocks. What are some good online resources to get Free GMAT Mocks?

Thanks

  • Create an account on gmatclub.com - first things first, s.... 25 Aug '15.
frediey
fredix jones @frediey 70

Create an account on gmatclub.com - first things first, so that you will get to know the big names well. Almost all big players offer free GMAT mocks namely Manhattan, Veritas, Kaplan etc. You just have to create an account on these channels and start off.

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The electronics company has unveiled what it claims to be the world’s smallest network digital camcorder, the length of which is that of a handheld computer, and it weighs less than 11 ounces.

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