Calculating Savings for "Rate" & "Demand Management" You are employed as a Strategic Sourcing Manager for the Province of British Columbia. You recently concluded a rather large FP and face-to-face negotiations with 3 short listed suppliers for the supply and delivery of office furniture throughout B.C. Out of all the products within this category, swivel chairs consume most of the total overall expenses; swivel chairs are paid for by the province for its employees. You and your stakeholders (Human Resources and Real Estate departments) decided to award all the business to your incumbent (current) supplier – Steel Co. Prior to issuing the RFP, Steel Co. charged your employer $300.00 for the Delux Aluminum "A" Grade Swivel Chair. This cost included both the cost of the product and the cost of delivery to your desired sites. Below is other pertinent information for your consideration: Each year for the last 3 years, the Province has purchased 40,000 swivel chairs. Of the 40,000 swivel chairs, 35% was for Part Time and "Work from Home" employees. To save costs, the Province of B.C. issued a new corporate policy that does not allow Part-Time and "Work from Home" employees to purchase this swivel chair. Only employees that work in the office and are full time, are permitted to purchase this swivel chair. The online ordering system has restricted its furniture catalogue for the Delux Aluminum "A" Grade Swivel Chair to its full time and office location employees. Therefore, compliance to the policy is assumed to be at 100%. Based on the above information: a) Calculate the annual savings obtained as a result of issuing this policy.