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.