26 Jan 2023

65

How to Use Spend Analysis to Classify Products

Format: APA

Academic level: Master’s

Paper type: Case Study

Words: 295

Pages: 1

Downloads: 0

While looking at the results in Figure 1 below, Medical items (A-00088-1090-47) record the lowest sum of purchases (102) with a total of 339188.91 USD. On the other hand, other Equipment items which are also items that can be reused many times like general fluids have a sum of purchases as 163 . Still, it has the lowest of all amount of total value which is 320864.66 USD. This implies that despite many items of equipment were purchased as compared to medical issues; their total cost is less meaning that on average, the price of each equipment , in general, is relatively lower than the value of each medical items.

Row LabelsSum of PurchasesSum of Total Value
A-00088-1090-47

102

339188.91

E00168-0011-35

198

405568.55

F00173-0453-01

361

629558

M00409-7983-09

528

1370500.36

Q57664-0377-08

163

320864.66

Grand Total 

1352 

3065680.48 

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Figure 1 : Sorted items: 

Besides , the sum of purchases for the surgical items is 198 with the number of total values being 405568.55. from the data ; this is the third most supplied item in Iraq Displaced Relief's expenditures records. Furthermore, the second most provided items are the Pharmaceutical items where in August 2009; the Iraq Displaced Relief provided a total of 361 items at a total cost of 629558 USD of the Pharmaceutical items .

Finally, the leading items purchased and supplied by Iraq Displaced Relief in August 2009 is the Durable items ( things that can be reused many times) where 528 subjects were provided at a total cost of 1370500.36 USD, ( Perry, et, al, 2009) . For Iraq Displaced Relief expenditures to see if there are ways that their supply chain can be simplified so that IDR may use better leverage their total spend, they need to put more contributions in purchasing Pharmaceutical items and Durable items due to the fact they are the leading items supplied in any giving month. Through this, more financial gains for the IRD will be achieved , ( Hedley, & Bird, 2006, April) .

References 

Hedley, P., & Bird, P. (2006, April). Achieving high profit from your farm system. In  Proceedings of the Dairy3 Conference (Vol. 4, pp. 167-173). 

Perry, W. L., Johnson, S. E., Crane, K., Gompert, D. C., Gordon, I. V., Hunter, R. E., ... & Shatz, H. J. (2009).  Withdrawing from Iraq: Alternative Schedules , associated risks, and mitigating strategies . RAND NATIONAL DEFENSE RESEARCH INST SANTA MONICA CA. 

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StudyBounty. (2023, September 16). How to Use Spend Analysis to Classify Products.
https://studybounty.com/how-to-use-spend-analysis-to-classify-products-case-study

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