Article ID: | iaor2007546 |
Country: | Netherlands |
Volume: | 103 |
Issue: | 1 |
Start Page Number: | 10 |
End Page Number: | 16 |
Publication Date: | Jan 2006 |
Journal: | International Journal of Production Economics |
Authors: | Jodlbauer Herbert, Stcher Wolfgang |
Keywords: | Little's law |
In this paper we show that the recently introduced ‘input-weighted average lead-time’ is equivalent to the average lead-time measured per item. Furthermore, we state that measuring the average lead-time does not depend on knowing the applied priority rule. Consequently, the relationship ‘average lead-time is equal to the fraction average inventory over average utilization’ holds true for every priority rule. Altogether this can be seen as Little's Law in a continuous setting.