Ohio Polymer, Inc.

Ohio Polymer is about to negotiate a contract with ProBut Hydrocarbon, Inc. for the purchase of ethylene gas. The contract will require Ohio to purchase a fixed daily quantity of the gas at a set price per ton. Ohio Polymer's senior management is looking for advice on how much gas they should try to obtain and what price they should be willing to pay. A companion case is ProBut Hydrocarbon, Inc., case 9A98E037, which presents the negotiation from ProBut's perspective.