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. For more information on Using Information to Make Decision check out: https://www.huffpost.com/entry/11-steps-to-improve-your-decision-making_b_59c0454fe4b0c3e70e742737
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