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Double Olive Oil is planning to purchase its supply of raw Olives from three primary growers, Supplier A, Supplier B, and Supplier C. Purchase prices

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Double Olive Oil is planning to purchase its supply of raw Olives from three primary growers, Supplier A, Supplier B, and Supplier C. Purchase prices will not set until the orders are actually placed so Double Olive Oil will have to forecast purchase prices for the raw material and sales prices for the refined Olive oil. The contract is written such that Double Olive Oil is only required to commit to 80% of total capacity up front. Any amounts over that can be purchased only as required for the same price. Historical prices for the last 15 years are in the table below (note that year 15 is the most current year). Olive 011 Average Price Average Pnce Index Index $f5hort ton Marketing Yea: $l5h01t ton - - H M H w H .h L . H

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