Purchasing decisions - Which vendor rebate is better?

In this video, we perform a supplier cost analysis by comparing two vendors, who offer different price per Unit, but also different rebate structures. We will create an Excel model to automatically calculate the cost (less applicable rebate) at different purchased quantities. We will then turn this calculation into Excel's powerful Data Tables, which calculate for us at different points, what will be the cost, less rebate amounts, for each vendor.

We then convert this information into a nice visualization (a line chart) to show us the evolution of cost at increasing purchased quantities. The chart makes it very clear, what decision we should make at different purchase volume levels. This type of financial analysis is great if you are an FP&A analyst or an accounting and finance professional. You business team will thank you for the simplified analysis that helps them make the right financial decision for the company.

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