Business Finance
MGT 300 Ashford University Using Information to Support Sourcing Decisions Paper

mgt 300

ashford university

MGT

Question Description

I’m studying and need help with a Business question to help me learn.

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 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 category.

Submit your assignment as an MS Word document.

Your assignment

  • Must be 600-900 words (excluding title page and references page) in length, double-spaced and formatted according to APA style as outlined in the Ashford Writing Center. 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 from the Ashford Library in addition to the textbook. Must document all sources in APA style, as outlined in the Ashford Writing Center.
  • Must document all sources in APA style, as outlined in the Ashford Writing Center.
  • Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

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Final Answer

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Running Head: USING INFORMATION TO SUPPORT SOURCING DECISIONS

Using Information to Support Sourcing Decisions
Name
Course Name
Course Number
Professor
Date

1

USING INFORMATION TO SUPPORT SOURCING DECISIONS

2

Using Information to Support Sourcing Decisions
Calculation of percentages for each category goes as follows;
For Production Machinery, we have total amount (170,000 + 20,000 + 3,000 + 23,000 +
288,000) = 504,000= 33.73%
For Maintenance =3.97%
For Hardware = 0.6%
For Sheet Metal=4.56%
For Electronic Components =57.14%
Spend Categorization as either Low or High Complexity
With respect to the complexity, the spend categories can be categorized as summarized in the
following discussion.
Production Machinery
Decisions in regard to purchasing are vital since they have a direct influence on
manufacturing, especially when the objective is to meet the company's outlined strategy. The
production machinery falls on the high complexity category, given the enormous impact it has on
the company's profitability. Also, the production machinery has the greatest influence on the
value added to the final output. There can hardly be proper operations in ...

ChloeL134 (9184)
UT Austin

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