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Technical note
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Reference no. UVA-OM-1194
Authors: Kamalini Ramdas
Published by: Darden Business Publishing
Originally published in: 2005
Version: 13 May 2019
Revision date: 29-May-2019
Length: 7 pages
Data source: Published sources

Abstract

This note focuses on the fundamentals of managing process flows. A process viewpoint is useful when the goal is to manage operational metrics such as capacity, cost, inventory, or responsiveness. The note examines Little's Law, the fundamental relationship among three important metrics: average inventory, average throughput time, and average throughput rate in any system that is in equilibrium.

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Abstract

This note focuses on the fundamentals of managing process flows. A process viewpoint is useful when the goal is to manage operational metrics such as capacity, cost, inventory, or responsiveness. The note examines Little's Law, the fundamental relationship among three important metrics: average inventory, average throughput time, and average throughput rate in any system that is in equilibrium.

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