Transtech Inc produces transformers. Each order is custom designed and manufactured for the customer.
Transtech Inc produces transformers. Each order is custom designed and manufactured for the customer. Each order goes through 3 phases:
1. Transformer Design, which takes 2 weeks
2. Procurement, which has a lead time of 8 weeks.
3. Assembly and testing, which takes 6 weeks.
The design group can handle only 4 projects at any given time. The other groups are not capacity constrained.
How many projects is Transtech able to complete per year?
How much total work-in-process (number of projects started but not yet completed) does the company typically have? (Hint: Little’s Law)
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