The formula to calculate the Cost of Interruption is:
\[ COI = IT \times HR \]
Where:
The Cost of Interruption (COI) is a measure of the financial impact of a disruption in operations, calculated by multiplying the total interruption time by the hourly rate. This metric is important for businesses to understand the potential costs associated with downtime and to plan for minimizing interruptions.
Let's assume the following values:
Using the formula:
\[ COI = 5 \times 200 = 1000 \, \text{\$} \]
The Cost of Interruption is $1000.
Let's assume the following values:
Using the formula:
\[ COI = 3 \times 150 = 450 \, \text{\$} \]
The Cost of Interruption is $450.
