Assignment:
Using Information to Support Sourcing Decisions
The purchasing manager has provided the following information for your use:
Spend Category Amount Thousands US$ Number of Suppliers
Production Machinery 170 2
Maintenance 20 10
Hardware 3 10
Sheet Metal 23 7
Electronic Components 288 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 2x2 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 to 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.