Using Information to Support Sourcing Decisions
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 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.
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.