The document discusses optimizing logistics processes through mining business transactions and determining optimal inventory levels. It involves four main steps: [1] process mining transaction data to create process models, [2] identifying business transactions within the data, [3] mining statistics on transactions, and [4] calculating optimal stock reorder points using a formula that considers factors like lead time, demand, and required service level. The overall goal is to find bottlenecks and optimal inventory levels to improve logistics efficiency and service levels.

1. Optimization of Logistics Processes
by Mining Business Transactions and Determining the Optimal Inventory Level
Linda Terlouw (linda.terlouw@icris.nl), www.icris.nl

2. situation

3. situation
How do we get the right material to the right place at the right moment?

4. situation
How do we get the right material to the right place at the right moment?
mechanic:
“I want a service level of 100%!”
logistics officer:
“We don’t have enough money!”

5. task

6. task
Find bottlenecks that lead to unnecessary downtime of machines and
determine optimal stock levels

7. approach

8. approach step 1: mining process flows

9. process mining
Source: olifantenpaadjes.nl

10. the event log
Source: logboek Cherokee, 11 July 1867, Valparaiso, Chile
consists of: case id, timestamp, activity, and resource

11. ILP-miner
fuzzy miner
genetic miner
inductive miner
heuristic miner
process mining algorithms
and many more!

12. the inductive miner
Making the directly follows graph

13. the inductive miner
Filtering the directly follows graph

14. The directly follows graph is just a simple transformation and
visualization of the data using a weighted directed graph.
the inductive miner
Making the directly follows graph

15. the inductive miner
The inductive miner finds process models from event logs using a
recursive algorithm

16. the inductive miner
Recursion for process models?

17. sequence found!
the inductive miner
Recursion for process models?

18. choice found!
the inductive miner
Recursion for process models?

19. sequence found!
the inductive miner
Recursion for process models?

20. the inductive miner
Flow chart produced by miner

21. approach step 2: finding business transactions

22. finding business transactions
- Are coordination acts explicit or tacit?
- How can we map events to coordination and production acts?
- Are declines, rejects, and cancellations allowed?
- How does the process flow found by ‘normal process mining’ relate to
the process tree used in DEMO?

23. approach step 3: mining statistics on transaction level

24. approach step 4: finding optimal stock levels

25. the stock reorder point
n = L (d/D) + σ [Φ(S)]
where:
- L is the lead time in days,
- d is the annual demand for the item,
- D is the number of working days in a year,
- σ is the demand standard deviation (per lead time),
- S is the required service level,
- Φ is the inverse of the standard normal distribution.

26. result

27. visualization business transactions
For each transaction we show statistics about the number of times
it occurs and the time it takes

28. calculation stock reorder points

29. Questions or suggestions for improvement?
Linda Terlouw (linda.terlouw@icris.nl), www.icris.nl