Using Information to Support Sourcing Decisions

The purchasing manager has provided (5 spend categories) 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 categoriesplaced in either "High" or "Low" Risk group.
• Explain why you placed each item in the selected category.

Your assignment

• Must be 600-900 words (excluding title page and references page) in length, doublespaced and formatted according to APA style as outlined.
• 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.