Quantitative models are typically evaluated using the lowest cost as the primary decision criteria, with issues such as shortage costs and layoff costs handled by estimating the effect on costs. While the lowest cost may be appropriate in some cases, the long-term implications of customer service and supply chain management may dictate a solution that is not the "lowest cost." 

The three basic strategies for achieving competitive advantage through operations are:

Differentiation.

Low cost.

Response.

While it makes sense that a firm that is attempting a low-cost strategy would evaluate its quantitative production decisions on a low-cost basis, those firms seeking a differentiation or response strategy might not opt to evaluate production on cost, alone.

1. To that end, what other quantitative or qualitative criteria might a firm use if it was following a:

A: Differentiation Strategy.

B: Response Strategy.

2. Describe at least one quantitative and qualitative criteria for each post—one for Differentiation, one for Response.