Using Information to Support Sourcing Decisions

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.