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QUESTION

The purchasing manager has provided the following information for your use:

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.
  • Make 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 c
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