Using Information to Support Sourcing Decisions

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 Ashford Writing Center. Contextual (Level One) headings must be used to organize your paper and your thoughts.