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 2×2 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.