A quoting department for a custom publishing house can complete 4 quotes per day, and there
are 20 quotes in various stages in the department. Applying Little’s Law, the current lead time
for a quote is how many days?
To calculate the current lead time for a quote using Little's Law, we need to know two values: the average number of quotes completed per day and the average number of quotes in the department.
In this case, we are given that the quoting department can complete 4 quotes per day and there are 20 quotes in various stages in the department.
Little's Law states that the average lead time (L) is equal to the average number of items in the system (W) divided by the processing rate (R).
Mathematically, it can be represented as:
L = W / R
Given:
Average number of quotes completed per day (R) = 4
Average number of quotes in the department (W) = 20
Substituting these values into the formula, we have:
L = 20 / 4
L = 5
Therefore, the current lead time for a quote is 5 days.