LANDHILLS WINERY: DEVELOPING AN OPTIMAL BLENDING PLAN Owen P. Hall Jr. and Kenneth Ko wrote this case solely to provide material for class discussion….

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The case is entitled ‘Landhills Winery: Developing an Optimal Blending Plan’ written by Owen Hall and Kenneth Ko. The assignment requires answering the four questions listed on the following page of this document. As a part of answering the questions, you will develop an analytical model using Microsoft Excel. This model is also a required part of the submission for grading purposes. REQUIRED You have to submit the following two documents by the assignment due date and time for grading purposes: 1. A case write-up (in Microsoft Word or Adobe PDF format), containing the answers to the assigned questions, including any tables, figures, or summaries from the model; and 2. Supporting analytical model in Microsoft Excel format FORMAT AND SUBMISSION The case write-up (including a Title Page) should be contained in a maximum of six lettersized, single-sided pages, using a standard, single-spaced font. The analytical model has no page limit or other formatting specifications but should be appropriately detailed with adequate documentation. The Microsoft Word/Adobe PDF and Microsoft Excel files are to be emailed to the instructor by the due date and time. No printout is required.

LANDHILLS WINERY: DEVELOPING AN OPTIMAL BLENDING PLAN ◈

1. How much of each wine should be produced to maximize net profits?

2. How much of each blending grape by type is not used?

3. What is the maximum that the vintner should pay for one more bottle of the 2011 Cabernet Sauvignon harvested in Santa Barbara?

4. What is the impact on the optimal allocation if only 50,000 bottles of vintage Cabernet Sauvignon can be sold?

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