A new energy business is considering selling and installing three types of alternative energy systems for residential homes in addition to its conventional system (conv). The first is a thermal solar (solar1) hot water system that provides both hot water and heat to the home. The second is a solar system (solar2) that provides electricity to the home. The third is a geothermal (geo) heating and cooling system. The business has 10 installers and faces the following parameters for the year:
|
|
conv
|
solar1
|
solar2
|
geo
|
Endowment
|
|
Profit/unit
|
$2,000
|
$1,500
|
$2,500
|
$1,000
|
|
|
Labor (weeks)
|
0.5
|
1.0
|
1.5
|
0.75
|
520
|
The firm has four goals:
Goal 1: Make at least $1,500,000 per year from the sale of these four systems Goal 2: Sell at least 160solar1 systems each year
Goal 3: Sell at least 160solar2 systems each year
Goal 4: Sell at least 160geo systems each year
Formulate and solve the profit maximizing solution to this exercise ignoring the four goals.