Window Works recently completed a Full RFQ on its lumber spend and received feedback from vendors, outlined below:

They purchase both interior and exterior parts:

• Interior parts have no purchasing requirements (you can buy as much as you need and can purchase single parts from individual vendors) and do not qualify for volume rebates
• Exterior parts must all be purchased from a single vendor, each offering a different rebate per order:
  • Windows R Us: If you spend more than $50K on exterior parts, your order is 25% off
  • Lumber Supply Co: Regardless of spend on exterior parts, your order is 20% off
  • Sight Unseen Inc.: No discount on first $30K of spend on exterior parts. After that, each additional dollar spent on exterior parts is 75% off
  • Easy Breezy International: No discount
  • Four Square.com: Regardless of spend on exterior parts, you get 25% off
  • Remember: these volume rebates only apply to the exterior parts and do not discount any spend on interior parts

For Part 2, you must complete the following:

• Interior Parts
  • For which parts does it make sense to change vendor? Rank the parts highest to lowest in terms of annual savings opportunity.
    • Note: keep in mind that you can buy any interior part from any vendor, so do not limit your answer to a single vendor
  • Who would you purchase each part from? What are the total potential annual savings if you purchased each part from its cheapest vendor?
• Exterior Parts
  • Since all exterior parts must be purchased from a single vendor, which vendor offers the best deal? Determine the total post-rebate spend at each vendor.
    • Note: Be mindful that not all vendors use the same UOM
  • Would this vendor still be cheapest if the annual usage for 2 x 8 Oak was to drop from 4000 pieces to 2000 pieces? Determine the total post-rebate spend at each vendor after this change.

*Please use image to answer the above questions*

Note: Red highlights where a given vendor is the current vendor for that item