Assignment:
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.
Your assignment
Should be 600-900 words (excluding title page and references page) in length, double-spaced and formatted according to APA style.
Contextual (Level One) headings Should be used to organize your paper and your thoughts. Should include a title page with the following:
Title of paper
Should address the topic of the paper with critical thought.
Should utilize a minimum of one scholarly and/or peer-reviewed source. Should document all sources in APA style.
Should include a separate reference page, formatted according to APA style.