You are fle Finance Manzger Of DP Limited which is in the business Of manufacturing wire rof A division in the ampany manufactures copper wire rods from a single manufacturing plant in Central India. The division purchases raw material (copper cathodes) from various suppliers across the country. The cathodes are melted and wire rods of various dimensions are produced. Each batch of wire rods produced are test for quality and strength. The wire rods are stored in rolls in warehouse and dispatched in cornp:any Ywned trucks as the requirement of the Customers The customers are required to pay of invtice value 3S advance and balar.ce within 30 days of delivery of goods. The Company prices its copper wire rods based on the price prevailing on London Metal Ex&lange after adjusting it with a factor to cover canversion costs and profits The company explores newer markets by advertising in national dailies participating in various industrial events in India as well as abroad An annual conference Of Customers is CMducted by the ampany to improve Customer relationships and attract newer Customers The Customers have right to return the material if quaity specifications are met. There is a separate team to handle such camplaints. The following email was sent by the Chief Financial Officer Of the company to you. From: Chief Financial Officer TO: Finance Manager Subject Price Fluctuation The board is quite aware Of foreign exchange fluctuation related risks. However, they are not much aware Of risks related to fiuctutim in commodity prices The prices of copper *ich are used to manufacture Copw wire rods have fallen dom by Over 20% in the last six months Owing to global factors. The grocurernent tegm Of Copper Wfre Diisjon has waiting for the right time to buy these metals as they expect the mrices to fan down further. However, we are at a verge Of stock Of these metals as no purchgse was made in the last one month The bonus Of groa.'rement team largely depends on the annual savings as compared to the budgeted cost Of purchase am not happy with the BpvOCh Of speculation and making profits out of price fuctuatin in raw materiaJs. Could you highlight the issues related with Our performance measurement mechznism and swggest how it could be improved? Chief Financial Officer