For $2022,$ a company operating in the plastic industry budgeted the following procurement costs for their production plants:

Purchasing of new production plant equipment $=$$$200,000($depreciated over $5$ years$)$

Purchasing of the production plant equipment extended warranty $=$$$10,000($for the next five years$)$

Purchasing of production plant maintenance services $=$$$150,000($for the year$)$

In $2022,$ after negotiating the conditions with the different suppliers, the procurement department of the company obtained the following:

$$200,000$ for purchasing the plant equipment. As they decided to purchase all the equipment needed from one supplier, the supplier offered a discount and included in the price the extended warranty for free for the next three years.

$$175,000$ for purchasing maintenance services. The extra $$25,000$ were due to the fact that the company contracted maintenance services with $7$ different suppliers, and the unitary price of the services ended up being higher than what was budgeted.

Which of the following statements are true?

Note: one or more can be selected. Be sure the difference between cost savings and cost avoidance is clear!

The procurement department did not manage the demand for maintenance services efficiently.

The procurement department was able to obtain a cost avoidance of $$10,000$

The procurement department was able to obtain a price saving of $$25,000$

The procurement department did not generate price savings nor cost avoidance.

Overall, the procurement department was highly inefficient