This lecture covers the approach to physical underlying relationships in the context of life cycle inventory calculation, focusing on boundaries, multifunctionality treatment, and expanding boundaries. It discusses how to handle multifunctionality in LCA, including subdivision, underlying physical relationships, imputation, and boundary expansion. The concept of combined production, where the quantity of co-products can be varied independently, is also explained. Additionally, it explores a case study of a system with two processes, 'cakes' and 'biscuits', and how a product is used in the analyzed product system. The lecture concludes with references and image sources, including ISO standards and icons from Flaticon.