In this study we model for ordering a commodity for a number of locations in order to satisfy a future need. Purchasing and distribution decisions for the commodity are considered whose price is random and correlated with its demand. The proposed model is further developed under the condition that the purchasing decisions of individual locations can be pooled. We obtain the optimal purchase quantity, time and quantity of allocation, and quantify the benefits of pooling price risk. This is a joint work with Refik Gullu.