1. As a category manager, your manager requested you to categorize the importance of the following items for an automobile manufacturer by using the risk/value technique. Engine, tires, paper for the office use, a uniquely engineered muffler, describe the rationale you used to ascertain each category? (30 points)
2. You work in a mining company as supply chain analyst, your boss got higher pressure from the director of board to identify the issues in supply chain (see below summary), it is urgent to get this solved as soon as possible. He requested you to collect the information and provide him the better solution. (70 points)
   • Your company has 3 locations, you found out that accounting paid all invoices from suppliers who claimed to have supplied a remote location even when no confirmation of orders, deliveries, or receipts was available. This occurred in about one-third of all invoices. The accountant explained: "Getting suppliers to provide odd requirements in a hurry and to get bush pilots to fly them in is a constant hassle. The last thing we want to do is lose the goodwill of these suppliers because we don't have our records.
   • Communication between actual sites and suppliers occurred in two main ways. Since site leaders were in regular contact with head office personnel, they frequently asked the head office contacts to place specific orders for them. In addition, it was common for remote site personnel to contact suppliers directly and place orders.
   • The interesting thing you discovered 20 instances of multiple deliveries of the same item within days to the same site from different suppliers and 10 instances of multiple deliveries of the same item from the same supplier within a few days. There were 11 instances where the airfreight bill was at least 10 times higher than the value of the item transported.

Question: Consider the current processes and operating environment, identify the main issues or concerns from a supply (purchasing) perspective? what would be the steps you would take in your upcoming meeting with your boss. What recommendation you will apply to the issue for short- and long-term objectives.