A classic economic comparison between upfront purchase cost and ongoing operational savings
Energy efficiency is not just
an issue for businesses; most individuals or households have also considered
questions like:
- Should I leave my old-fashioned light bulbs in operation or replace them with energy-saving
devices such as LED lights; and, if so, when?
- When an old light bulb fails, do I buy an expensive energy-saving light bulb or
replace it with another conventional light bulb? (I have some spare bulbs, so they
cost me nothing more for now.)
- Should I replace my conventional light bulbs proactively even before they fail?
The near-universal context makes this a very accessible application
for STEM, with the additional twist
that the operational lifetime of a light-bulb tends to be estimated in hours compared
to years or even decades for always-on networking assets.
Figure 1: Live snapshot from the model
The case for replacing the conventional bulb depends as much on its own usage as
on the relative costs of the LED light and energy, and the evolution of the associated
cost trends. It obviously makes more sense to replace a bulb which operates for
several hours each day compared to one which is turned on for only a few minutes.
The associated
newsletter article illustrates how an ordinary, every day question can be answered with
a simple model. Implied Logic can work with you to develop a clear methodology for
the most complex business problems and has the technology to push such models to
the web with just a few clicks. Please
access the full model and
download a detailed description of the methodology to review offline and share with
interested colleagues.