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(16) The operations manager of DBS thinks they can source some of their basic raw materials from overseas low-cost economies, which could lead to significant

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(16) The operations manager of DBS thinks they can source some of their basic raw materials from overseas low-cost economies, which could lead to significant savings by reducing their purchasing costs. However, there is a risk that the quality of raw materials procured from those overseas, low- cost economies may not be as high as that provided by the current suppliers. If the quality of raw materials is not top notch, this can have an adverse effect on the quality of finished product that DBS sells to its customers. Most customers of DBS are returning customers with longstanding loyalty and they keep coming back as they trust the quality they get although DBS charges a higher price relative to its closest competitors. Using the interlinking model of quality and protability, explain to the operations manager how ensuring a high product quality can actually help DBS enhance profitability

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