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. 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 Ashford Library in addition to the textbook. Must document all sources in APA style, as outlined in the Ashford Writing Center.

•Must document all sources in APA style, as outlined in the Ashford Writing Center