Classify each spend category as either low or high


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 600-900 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:

o Title of paper
o Student's name
o Course name and number
o Instructor's name
o Date submitted

• Must address the topic of the paper with critical thought.

• Must utilize a minimum of one scholarly and/or peer-reviewed source from the Ashford Library in addition to the textbook. Must document all sources in APA style, as outlined in the Ashford Writing Center.

• Must document all sources in APA style, as outlined in the Ashford Writing Center.

Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

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