MISHRA ABHISHEK FREEMARK ABBEY WINERY Memo
FREEMARK ABEEY WINERY Case Memo
“I de
“ I declare that the material contained in this assignment is the end result of my own work and that due acknowledgement has been given in the bibliography to ALL sources, be they printed, electronic or personal”
Abhishek Mishra Student No-14203717 MSc. in Supply Chain management
FREEMARK ABBEY CASE SOLUTION
Executive summary
The Case analysis will provide with a deep analysis of problem in decision making with Mr. William Jagger , a member of the partnership which owns Freemark Abbey winery located in St. Helena, California, in the northern Napa Valley . The winery was first built by Josephine Marlin Tychson, one of the first women to build and operate a winery in the state.[1] .In the states Due to geographical circumstances and associated weather, the wine industry is concentrated in California, with a 90% of U.S. wine production.[1] In this case Mr. William Jagger has to make a decision to expand the Reisling product line of the company. There were weather reports forecasting a possibility of a storm , Mr. William confronts a problem where he needs to decide whether he should harvest the grapes immediately or wait for the storm leaving the grapes on the vines. He must consider the risk and the estimated revenue with each of the alternatives and thereafter choose he should wait for the storm or harvest the grapes immediately. There is a equal probability of storm hitting the valley and not not striking the valley with the vines. If the storm hits the valley there is a .6 probability that the grape berries will absorb the rainwater and swell by 5-10 %, which in turn will decrease the concentration of the sugar. This would lead bottling and selling of thin wines which sell at $2.00, which is about $.85 per bottle of wine, sold by harvesting the grapes immediately. There is also a .4 probability that botrytis molds are
“I de
“ I declare that the material contained in this assignment is the end result of my own work and that due acknowledgement has been given in the bibliography to ALL sources, be they printed, electronic or personal”
Abhishek Mishra Student No-14203717 MSc. in Supply Chain management
FREEMARK ABBEY CASE SOLUTION
Executive summary
The Case analysis will provide with a deep analysis of problem in decision making with Mr. William Jagger , a member of the partnership which owns Freemark Abbey winery located in St. Helena, California, in the northern Napa Valley . The winery was first built by Josephine Marlin Tychson, one of the first women to build and operate a winery in the state.[1] .In the states Due to geographical circumstances and associated weather, the wine industry is concentrated in California, with a 90% of U.S. wine production.[1] In this case Mr. William Jagger has to make a decision to expand the Reisling product line of the company. There were weather reports forecasting a possibility of a storm , Mr. William confronts a problem where he needs to decide whether he should harvest the grapes immediately or wait for the storm leaving the grapes on the vines. He must consider the risk and the estimated revenue with each of the alternatives and thereafter choose he should wait for the storm or harvest the grapes immediately. There is a equal probability of storm hitting the valley and not not striking the valley with the vines. If the storm hits the valley there is a .6 probability that the grape berries will absorb the rainwater and swell by 5-10 %, which in turn will decrease the concentration of the sugar. This would lead bottling and selling of thin wines which sell at $2.00, which is about $.85 per bottle of wine, sold by harvesting the grapes immediately. There is also a .4 probability that botrytis molds are