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Using Information to Support Sourcing DecisionsThe purchasing manager has provided the following information for your use:Spend Category – Production MachineryAmount Thousands US$ – 170Number of Suppl

Using Information to Support Sourcing DecisionsThe purchasing manager has provided the following information for your use:Spend Category – Production MachineryAmount Thousands US$ – 170Number of Suppl

Using Information to Support Sourcing Decisions

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The purchasing manager has provided (5 spend catergories) the following information for your use:

Spend Category – Production Machinery

Amount Thousands US$ – 170

Number of Suppliers – 2

Spend Category – Maintenance

Amount Thousands US$ – 20

Number of Suppliers – 10

Spend Category – Hardware

Amount Thousands US$ – 3

Number of Suppliers – 10

Spend Category – Sheet Metal

Amount Thousands US$ – 23

Number of Suppliers – 7

Spend Category – Electronic Components

Amount Thousands US$ – 288

Number of Suppliers – 5

  • Assuming that the amounts shown represent the total annual spend (Amount/Total Amount) calculate the percent of spend for each category.
  • Classify each spend category as either low or high complexity and summarize your reasoning.
  • Create a 2×2 Risk/Value matrix showing each of the five spend categories placed in either “High” or “Low” Risk group.
  • Explain why you placed each item in the selected category.

Submit your assignment as an MS Word document.

Your assignment

  • Must be 600-900 words (excluding title page and references page) in length, double-spaced and formatted according to APA style as outlined in the Ashford Writing Center. Contextual (Level One) headings must be used to organize your paper and your thoughts. Must include a title page with the following:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • Date submitted
  • Must address the topic of the paper with critical thought.
  • Must utilize a minimum of one scholarly and/or peer-reviewed source. Must document all sources in APA style.

Must include a separate reference page, formatted according to APA style.

 

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