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.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.