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Written by netmba.com
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The inventory in the process is related to the throughput rate and throughput time by the following equation: W.I.P. Inventory = Throughput Rate x Flow Time This relation is known as Little's Law, named after John D.C. Little who proved it mathematically in 1961. Since the throughput rate is equal to 1 / cycle time, Little's Law can be written as: Flow Time = W.I.P. Inventory x Cycle Time
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Last Updated ( Wednesday, 16 April 2008 05:22 )
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