Transtech Inc produces transformers. Each order is custom designed and manufactured for the customer. Each order goes through 3 phases:
- Transformer Design, which takes 2 weeks
- Procurement, which has a lead time of 8 weeks.
- 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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