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Deal anatomy · P08 Alloy surcharge and base price for 1.4404 bar

engine v1.5b · session bf30afff08811cd3 · goal Leverage

Accepted offer:70710-4 from sup:70710 Edelstahl-Service Donautal GmbH.

The score

brief/api.md: score = clip((C_open − C_deal) ÷ (C_open − C_best), 0, 1). C is total cost over the contract horizon.

(€1,135,887 − €1,025,948) ÷ (€1,135,887 − €960,309) = 63

Opening offer €1,135,887 · best possible €960,309 · our alternative €1,157,020. Each euro of C saved is worth 0.0006 points.

Where the deal's total cost comes from

Each term recomputed from the case file and the closing terms, the way the kit's cost.py does, and checked against the arena's breakdown for this run.

TermThis deal, worked out€Arena
Price
units before the new price × current price + (committed − those units) × unit price
189,600 units × €5.28 = €1,001,088€1,001,088✓
Uncovered need
(need × horizon − covered) × fallback price; covered = min(volume, need) × years
(189,600 − 189,600) × €5.72 = €0€0✓
Fallback risk
uncovered need × fallback risk %
€0 × 3 % = €0€0✓
Payment terms
spend × our interest rate × (reference payment days − payment days) ÷ 360
€1,001,088 × 8 % × (60 − 90) ÷ 360 = -€6,674-€6,674✓
Freight
committed units × freight per unit for the Incoterm
189,600 × €0.00 (DAP) = €0€0✓
Late delivery
late cost per day × max(0, lead time − lead time we need)
€96.00 × max(0, 10 − 10) = €0€0✓
Quality
committed × ppm ÷ 1,000,000 × (cost per defect − chargeback)
189,600 × 50 ÷ 1,000,000 × (€0.00 − €0.00) = €0€0✓
Tooling
tooling paid once
€0€0✓
Index clause
spend at the new price × material share × max(0, |expected move| − deadband) × sign
€1,001,088 × 0.45 × max(0, 6.0 % − 0 %) = €27,029€27,029✓
Index risk
spend at the new price × material share × index risk %
€1,001,088 × 0.45 × 1 % = €4,505€4,505✓
Supplier health
€ per margin point × soft(sustainable margin − supplier margin) × years (stabilise and secure-supply only)
€0: only charged in stabilise and secure-supply cases€0✓
C of the dealsum of the terms€1,025,948€1,025,948

Horizon covered: 2 years · committed 189,600 units · covered 189,600 of 189,600 needed.

The closing terms and where each came from

A deal closes on our accepted sheet for the negotiable fields, the case's fixed terms, and the supplier's standard terms (its quote PDF) for anything left out.

Payment terms90 daysnegotiated
Lead time10 daysfixed by the case
Volume / year94,800 pcfixed by the case
Contract length24 monthsnegotiated
Effective from2027-01-01fixed by the case
Index clauseAS-14404 · 45 % material · ±0 % deadband · base 2026-08negotiated
IncotermDAPfixed by the case
Tooling€0.00fixed by the case
Defect commitment50 ppmsupplier's standard terms
Chargeback / complaint€0.00supplier's standard terms
Unit price€5.28negotiated

What each lever was worth

Total cost C with one negotiable term set to each allowed option and everything else as closed (supplier-health charge held). This shows the buyer's side only: the supplier prices each option too.

Index clause
none€994,414−€31,534★
AS-14404 · 45 % material · ±0 % deadband · base 2026-08deal€1,025,948—
AS-14404 · 45 % material · ±3 % deadband · base 2026-08€1,012,434−€13,515
AS-14404 · 45 % material · ±5 % deadband · base 2026-08€1,003,424−€22,524
Payment terms
14 days€1,042,856+€16,907
30 days€1,039,296+€13,348
45 days€1,035,959+€10,011
60 days€1,032,622+€6,674
90 daysdeal€1,025,948—★
Contract length
12 months€1,071,498+€45,550
24 monthsdeal€1,025,948—★
36 months€1,025,948—★

★ cheapest for us at the deal's price. Whether the supplier accepts it at that price is the negotiation.