Canadian Cannabis Consortium Company – Version CCCC
The CCCC wishes to develop its initial product planning designas it takes advantage of new legalization laws in Canada and the USfor cannabis products. It expects to expand and modify theircannabis distribution in the future, but they wish to maximizetheir profitability initially prior to the new market hittingequilibrium.
CCCC has 5 production facilities/farms (Code named F1 throughF5) where raw cannabis is grown. The Farms’ (Fx) cannabisattributes include the maximum crop available (lbs), the per lb.growing cost, the THC measure per lb., and the CBD measure perlb. As a policy, the minimum amount of cannabis that can beused from each Farm is 60% of the maximum. And don’t forgetto model the maximum as well. The data is shown on the nextpage.
CCCC will take cannabis from the five farms and blend themtogether to make three products – PAIN, RELAX and FOCUS. Each product has a different sales price (per lb.) and adifferent cost to manufacture (also per lb.). Additionally,each product has different requirements in terms of the weightedaverage value of THC and CBD.
PAIN: THC levels must average less than or equal to11.2.
RELAX: THC levels must average greater than or equal to 12.5
FOCUS: THC levels must average less than or equal to10.1
CBD: All three products must INDIVIDUALLY average at least8.7.
PAIN - an individual farm cannot provide more than 35% of thetotal cannabis used in PAIN.
RELAX - an individual farm cannot provide more than 32.5% of thetotal cannabis used in RELAX.
FOCUS - does not have this requirement.
Finally, each of the three products must make up at least 25% oftotal production (measured in lbs.). Additionally, you cannot makemore than 1000 lbs. of any one product.
CCCC wishes to determine how to optimally design the productionof its 3 products using the cannabis grown at its 5 farms. Allcosts and revenues are measured on a per pound basis. Costsare production costs and growing costs (see data provided). Revenues come from total product made times the sales price. Thegoal of your model is to maximize revenue less costs.
At the very end, when your model is working well, save thesolution without integers and then force the variables to beintegers. If it takes longer than 3 minutes, kill and savethat solution. Summarize your solution with some sort ofrudimentary picture, graphic or brief discussion.
- Use Excel Solver To Find Solution Canadian Cannabis Consortium Company Version Cccc The Cccc Wishes To Develop Its Ini 1 (57.47 KiB) Viewed 19 times
IN PIL F1 F2 F3 F4 F5 PAIN RELAX FOCUS MAX Sales 350 425 525 800 400 46 40 54 Cost 75385 27 31 26 Manu cost 9 8 THC 13 13 9 10 15 11 OBD DATA 6 8 9 10 8.8