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 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.

Using information to support sourcing decisions

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