Using Information to Support Sourcing Decisions Warren

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 Writing Center. 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 from the University of Arizona Global Campus Library in addition to the textbook. Must document all sources in APA style, as outlined in the Writing Center.

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

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