PPI Repository

Inventory Cost

\mathit{IC}\mathit{^{\times}}(a)

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

Dimension:

Cost

Granularity:

Activity

Description

Inventory cost associated with all instantiations of an activity in the event log.

Potential use

Event log in which inventory cost information is recorded.

Assumptions

Minimizing inventory cost is desirable.

Desired Value:

MINIMIZE

Required attributes

act
actinst
ic
type

Equations

Formula for practitioners

$\sum _{i \in \mathit{inst}(a)} \mathit{IC}(i)$

$\mathit{inst}(a)$ returns the set of all instances of activity $a$ .
$\mathit{IC}(i)$ returns the inventory cost of activity instance $i$ .

Formal Definition

$\sum _{i \in \mathit{inst}(a)} \mathit{IC}\mathit{^{\times}}(i)$
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.activities.inventory_cost

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