Liquid Gold is an adaptation of the original cases Calambra Olive oil cases (UV3774 and UV3777). This version was written to support the changes the classroom experience. Cases describe launch Calambra, the company built to sell premier brand of olive oil. Frank Lockfeld, the founder, to determine how many of olive oil to make for the second year. Unfortunately, he has to take the decision to study the results of the first year of sales. Thus, there is a great uncertainty in the decision. Case (UV3849) tells the story of the launch and is enough information for the students to do a sensitivity analysis to determine which of the many uncertainties are most important. This leads to a discussion of tornado diagrams. In the event provides information on the critical uncertainties. This leads to a class spreadsheet modeling and simulation, finding the optimal order quantity, adjusted for risk, etc. It also gives an opportunity to discuss key business common problem: the difference between make to order and make-to-inventory of enterprises and the fundamental flaw in most business plans, resulting in a gross overestimation of the potential yield. "Hide
by Phillip E. Pfeifer, Dana Clyman, Laura Kornish, Jim Smith Source: Darden School of Business 6 pages. Publication Date: January 31, 2002. Prod. #: UV3851-PDF-ENG