Little's Law

Definition: Little's Law is the principle that states that the long-term average number of items in a stable system (L) is equal to the long-term average arrival rate (λ) multiplied by the average time an item spends in the system (W).
Formula: L = λW
It describes the fundamental relationship between work in process (WIP), throughput (T), and cycle time or lead time (L), stating that work-in-process equals throughput multiplied by cycle time for any stable process.
Formula: WIP = T x L
For example, in any stable queuing system, the expected number of customers in the system is equal to the arrival rate of customers multiplied by the expected time a customer spends in the system.

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More on operations: Operations Management, Operations Research, Safety Management.

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