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118                                                     A. Bjørn et al.

            9.1  Introduction

            During the life cycle inventory (LCI) analysis phase of an LCA the collection of
            data and the modelling of the flows to, from and within the product system(s) is
            done. This must be in line with the goal definition (see Chap. 7) and (to the extent
            possible) meet the requirements derived in the scope definition (see Chap. 8). The
            LCI result is a list of quantified elementary flows crossing the system boundary of
            the studied life cycle and it is used as input to the subsequent LCIA phase (see
            Chap. 10). Insights that the LCA practitioner gains when conducting the LCI
            analysis are also commonly used to adjust the requirements of the scope definition,
            e.g. when unforeseen data limitations lead to the need for a modification of the
            completeness requirements (see Sect. 8.6.3). Typically, the LCI analysis is the
            phase that requires the most efforts and resources from the LCA practitioner, and it
            is rarely practically possible to collect the highest quality of data for all processes of
            the LCI due to the unreasonable high cost that would be involved. Fortunately, it is
            also rarely needed in order to meet the goal and support the intended applications of
            the LCA. Therefore, the inventory analysis requires a structured approach to ensure
            that time is being spent on collection of data for those parts of the product’s life
            cycle that are most important for the overall impacts from the product system.
            Several iterations between the LCI and LCIA phase are normally needed to meet
            the goal of the study, with each iteration providing insight into which inventory data
            are the most important for the LCA results (see Chap. 6).
              In this chapter, we provide practical guidance on how to perform an LCI analysis
            using an iterative approach to LCA. We will focus on providing detailed guidance
            for the four decision contexts (A, B, C1 and C2) in line with the ILCD guideline.
            The chapter is structured around six steps of an LCI analysis:
            1. Identifying processes for the LCI model
            2. Planning and collecting data
            3. Constructing and quality checking unit processes
            4. Constructing LCI model and calculating LCI results
            5. Preparing the basis for uncertainty management and sensitivity analysis
            6. Reporting.

              Before digging into the details, we note that this chapter teaches how to construct
            an LCI using knowledge about the industrial processes taking part in a life cycle
            and the physical flows connecting them. This is called a process-based (or
            bottom-up) approach to inventory modelling. A complementary approach to con-
            structing an LCI is to model the life cycle inventory for the product from a mac-
            roscale perspective by drawing on a combination of (1) information on elementary
            flows associated with one unit of economic activity in different sectors and
            (2) national statistics on the trade of products and services between sectors. This is
            called environmentally extended input–output analysis (EEIO) and in contrast to
            the process-based approach it can be seen as a top-down approach to inventory
            modelling. The strength of EEIO is that a completeness of 100%, in theory, can be
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