Description
| Summary: | Cost estimation is central to understanding complex situations. This case helps students understand how seemingly simple situations can be complex for cost estimation because of interdependencies between different cost pools. The case focuses on energy costs, and there are interdependencies because of technical relationships: one system influences the energy use and costs of another system. For example, if the air compressor uses more energy, it also radiates more heat—which increases the ventilation system’s energy use but reduces the heating system’s energy use in the winter. The case also provides an opportunity to discuss the motives of the heads of different departments and how they influence departmental priorities for achieving the company’s energy efficiency objectives. Other teaching cases covering cost estimation in the literature are noted in the references section of this Teaching Note.
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| Item Description: | Originally Published InWouters, M., Stadtherr, F., & Kirchberger, M. (2016). Kühle Engler Kraftwagen AG: Analyzing energy costs for the 2025 energy efficiency challenge. IMA Education Case Journal, 9(2), Article 2. |
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| Physical Description: | 1 online resource : illustrations. |
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| Bibliography: | Includes bibliographical references and index. |
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| ISBN: | 9781526426369 (ebook) : |
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