The CCCC wishes to develop its initial product planning design as it takes advantage of new legalization laws in Canada for cannabis products. It expects to expand and modify their cannabis distribution in the future, but they wish to maximize their profitability initially prior to the new market hitting equilibrium. CCCC has 5 production facilities farms (Code named F1 through F5) where raw cannabis is grown. The Farms' (Ex) cannabis attributes include the maximum crop available (the), the per 1b. growing cost, the THC measure per lb., the CBD measure per lb. and the quality consistency of the crop (also per lb.). As a policy, the minimum amount of cannabis that can be used from each Farm is 60% of the maximum. The data is shown below. CCCC will take cannabis from the five farms and blend them together to make three products- PAIN, RELAX and FOCUS. Each product has a different sales price (per lb.) and a different cost to manufacture (also per lb.). Additionally each product has different requirements in terms of the weighted average value of THC. CBD and Quality. PAIN: THC levels must average less than or equal to 11.2. RELAX: THC levels must average greater than or equal to 12.5 FOCUS: THC levels must average less than or equal to 10.1 CBD: All three products must INDIVIDUALLY average at least 8.7. Quality: All three products must INDIVIDUALLY average at least 3.9. PAIN and RELAX - an individual farm cannot provide more than 42% of the total cannabis used in EACH product. FOCUS does not have this requirement. Finally, each of the three products must make up at least 20% of total production (measured in lbs.). CCCC wishes to determine how to optimally design the production of its 3 products using the cannabis grow at its 5 farms. All costs and revenues are measured on a per pound basis. Costs are production costs and growing costs (see data provided). Revenues come from total product made times the sales price. There are no demand constraints (assume whatever you make can be sold). The goal of your model is to maximize revenue less costs. At the very end, when your model is working well, save the solution without integers and then force the variables to be integers. If it takes longer than 3 minutes, kill and save that solution. Summarize your solution with some sort of picture, graphic or brief discussion. Provide both solutions. DATA MAX THC 31 F1 FZ F3 F4 FS Cost 350 425 525 600 400 CBD 13 9 10 15 11 Quality 6 8 3.51 9 4.25 10 3.75 8.8 4.51 33 36 PAIN RELAX FOCUS Sales Manu cost 46 9 6 54 13 This is version 1 of the problem. I reserve the right to alter as errors are uncovered! The CCCC wishes to develop its initial product planning design as it takes advantage of new legalization laws in Canada for cannabis products. It expects to expand and modify their cannabis distribution in the future, but they wish to maximize their profitability initially prior to the new market hitting equilibrium. CCCC has 5 production facilities farms (Code named F1 through F5) where raw cannabis is grown. The Farms' (Ex) cannabis attributes include the maximum crop available (the), the per 1b. growing cost, the THC measure per lb., the CBD measure per lb. and the quality consistency of the crop (also per lb.). As a policy, the minimum amount of cannabis that can be used from each Farm is 60% of the maximum. The data is shown below. CCCC will take cannabis from the five farms and blend them together to make three products- PAIN, RELAX and FOCUS. Each product has a different sales price (per lb.) and a different cost to manufacture (also per lb.). Additionally each product has different requirements in terms of the weighted average value of THC. CBD and Quality. PAIN: THC levels must average less than or equal to 11.2. RELAX: THC levels must average greater than or equal to 12.5 FOCUS: THC levels must average less than or equal to 10.1 CBD: All three products must INDIVIDUALLY average at least 8.7. Quality: All three products must INDIVIDUALLY average at least 3.9. PAIN and RELAX - an individual farm cannot provide more than 42% of the total cannabis used in EACH product. FOCUS does not have this requirement. Finally, each of the three products must make up at least 20% of total production (measured in lbs.). CCCC wishes to determine how to optimally design the production of its 3 products using the cannabis grow at its 5 farms. All costs and revenues are measured on a per pound basis. Costs are production costs and growing costs (see data provided). Revenues come from total product made times the sales price. There are no demand constraints (assume whatever you make can be sold). The goal of your model is to maximize revenue less costs. At the very end, when your model is working well, save the solution without integers and then force the variables to be integers. If it takes longer than 3 minutes, kill and save that solution. Summarize your solution with some sort of picture, graphic or brief discussion. Provide both solutions. DATA MAX THC 31 F1 FZ F3 F4 FS Cost 350 425 525 600 400 CBD 13 9 10 15 11 Quality 6 8 3.51 9 4.25 10 3.75 8.8 4.51 33 36 PAIN RELAX FOCUS Sales Manu cost 46 9 6 54 13 This is version 1 of the problem. I reserve the right to alter as errors are uncovered
