PPI Repository

Expected Inventory Cost

\mathit{e}\mathit{IC}\mathit{^{\times}}(g)

\mathit{\times} \in \{\mathit{sgl}, \mathit{sum}\}

Dimension:

Cost

Granularity:

Group of cases

Description

Expected inventory cost associated with all activity instances of a case belonging to a group of cases.

Potential use

Event log in which inventory cost information is recorded.

Assumptions

Minimizing inventory cost is desirable.

Desired Value:

MINIMIZE

Required attributes

actinst
case
ic
type

Equations

Formula for practitioners

$\frac{\mathit{IC}(g)}{\mathit{C}(g)}$

$\mathit{IC}(g)$ returns the total inventory cost for group $g$ .
$\mathit{C}(g)$ returns the number of cases in group $g$ .

Formal Definition

$\frac{\mathit{IC}\mathit{^{\times}}(g)}{\mathit{C}(g)}$
The $\mathit{\times}$ indicates that the PPI can take multiple forms, in this case, $\mathit{\times} \in \{\mathit{sgl}, \mathit{sum}\}$ . If $\mathit{\times} = \mathit{sgl}$ , then the function considers single events of activity instances for cost calculations, i.e., it uses $\mathit{IC}\mathit{^{sgl}}$ ; if $\mathit{\times} = \mathit{sum}$ , then the function considers the sum of all events of activity instances for cost calculations, i.e., it uses $\mathit{IC}\mathit{^{sum}}$ .

Python implementation

This indicator is implemented in the process_performance_indicators Python library.

process_performance_indicators.indicators.cost.groups.expected_inventory_cost

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