(B) Assume that the price of commodity with a constant monthly requirement of 90 tonnes is between GHc100 and GHc120 per tonne. The buyer is authorized to purchase up to 3 months supply 1 In January, market intelligence is that the current price of GHc100 is likely to rise over the next three months to GHc130. An order is therefore placed for 300 tonnes at GHc100 per tonne. 27 2. In early March, intelligence is that over the next three months, April to June, the price of GHc125 will further rise to GHc135. A further 300 tonnes were ordered at GHC125 per 270 tone 3. In early June, it was forecast that prices will fall. For July, August, and September we therefore buy one month's supply at GH140, GH135, and GH130 respectively. 4. In September, the forecast is of a further rise to GH$130. We therefore place a forward order for three months at GH90 | TASK: prepare a table indicating savings from forward buying on the upswing, hand- to-mouth buying and on the downswing. Smarks 2. In which months were they buying hand to mouth Imark 3. Calculate the saving made at the end of the year. 2marks 4. Would your advice management to keep on buying even when price fall? Imark (B) Assume that the price of commodity with a constant monthly requirement of 90 tonnes is between GHc100 and GHc120 per tonne. The buyer is authorized to purchase up to 3 months supply 1 In January, market intelligence is that the current price of GHc100 is likely to rise over the next three months to GHc130. An order is therefore placed for 300 tonnes at GHc100 per tonne. 27 2. In early March, intelligence is that over the next three months, April to June, the price of GHc125 will further rise to GHc135. A further 300 tonnes were ordered at GHC125 per 270 tone 3. In early June, it was forecast that prices will fall. For July, August, and September we therefore buy one month's supply at GH140, GH135, and GH130 respectively. 4. In September, the forecast is of a further rise to GH$130. We therefore place a forward order for three months at GH90 | TASK: prepare a table indicating savings from forward buying on the upswing, hand- to-mouth buying and on the downswing. Smarks 2. In which months were they buying hand to mouth Imark 3. Calculate the saving made at the end of the year. 2marks 4. Would your advice management to keep on buying even when price fall? Imark