Little’s Law can be stated as “The average number of things in the system is the product of the average rate at which things leave the system and the average time each one spends in the system” i.e. WIP = throughput rate x lead time. This can be rewritten as: lead time = WIP x cycle time. This shows how lead time increases with inventory and allows calculation of minimum WIP.
« Back to Glossary Index
« Back to Glossary Index