Question: A plant manager at a commercial bakery is evaluating frames of bread racks from two different suppliers. Supplier A has engineered its frames to accommodate

A plant manager at a commercial bakery is evaluating frames of bread racks from two different suppliers. Supplier A has engineered its frames to accommodate an extra rack, without altering the frames overall dimensions. With this extra rack, the bakerys daily production costs would be reduced by

5 % .

With Suppler Bs racks, the bakerys daily production costs would not change. When the plant manager evaluates the two competing suppliers frames, the manager would be using which method to determine the differentiation value of a frame having the extra rack?

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