Question: 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
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.
- Come up with a 2x2 Risk/Value matrix showing each of the five spend categoriesplaced in either "High" or "Low" Risk group.
- Explain why you placed each item in the selected category.
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