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Prove you know how to use Little’s Law:
L = λW
The average number of customers in a stable system (L) is equal to the average effective arrival rate (λ) multiplied by the average time a customer spends in the system (W)
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Question 1 of 14
1. Question
Using Little’s Law, what is the Throughput Rate if WIP is 6 and Lead Time is 8 days?
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So you need to shuffle the formula around to calculate Throughput Rate:
Throughput Rate (λ) = Work In Progress (L) / Lead Time (W)
Throughput Rate = 6 / 8 = 0.75

Question 2 of 14
2. Question
Using Little’s Law, what is the Throughput Rate if Lead Time is 10 days and WIP is 5.5?
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So you need to shuffle the formula around to calculate Throughput Rate:
Throughput Rate (λ) = Work In Progress (L) / Lead Time (W)
Throughput Rate = 5.5 / 10 = 0.55

Question 3 of 14
3. Question
Using Little’s Law, what is the WIP if Lead Time is 4 and Throughput Rate is 1.5?
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So, this question:
Work In Progress = 1.5 x 4 = 6

Question 4 of 14
4. Question
Using Little’s Law, what is the WIP if Throughput Rate is 0.625 and Lead Time is 16?
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So, this question:
Work In Progress = 0.625 x 16 = 10

Question 5 of 14
5. Question
Using Little’s Law, what is the Lead Time if Throughput Rate is 0.33333 and WIP is 4?
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So you need to shuffle the formula around to calculate Lead Time:
Lead Time (W) = Work In Progress (L) / Throughput Rate (λ)
So, this question:
Lead Time = 4 / 0.33333 = 12.00012

Question 6 of 14
6. Question
Using Little’s Law, what is the Lead Time if WIP is 7 and Throughput Rate is 0.7?
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So you need to shuffle the formula around to calculate Lead Time:
Lead Time (W) = Work In Progress (L) / Throughput Rate (λ)
So, this question:
Lead Time = 7 / 0.7 = 10

Question 7 of 14
7. Question
Using Little’s Law, calculate which of the following has a better Throughput Rate:
 Option A: WIP of 10 and Lead Time of 16
 Option B: Lead Time of 5 and WIP of 3
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So you need to shuffle the formula around to calculate Throughput Rate:
Throughput Rate (λ) = Work In Progress (L) / Lead Time (W)
Therefore, our 2 options are calculated as follows:
Throughput Rate A = 10 / 16 = 0.625
Throughput Rate B = 3 / 5 = 0.60.625 items per day is higher than 0.6 items per day, so option A is better that option B.

Question 8 of 14
8. Question
Using Little’s Law, calculate which of the following has a better Lead Time / would result in a quicker turnaround:
 Option A: WIP of 6 and TR of 1.5
 Option B: WIP of 3 or TR of 0.6
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
So you need to shuffle the formula around to calculate Lead Time:
Lead Time (W) = Work In Progress (L) / Throughput Rate (λ)
Therefore, our 2 options are calculated as follows:
Lead Time A = 6 / 1.5 = 4
Lead Time B = 3 / 0.6 = 54 days is quicker than 5 days, so option A is the best.

Question 9 of 14
9. Question
(9) Using Little’s Law, which has the lower WIP / has fewer things in progress:
 Option A: Lead Time of 14 and Throughput Rate of 0.5
 Option B: Lead Time of 8 and Throughput Rate of 0.75
Correct
Well done!
Incorrect
Oops, you’ve got your calculation wrong.
L = λW is actually saying:
WIP (L) = Throughput Rate (λ) x Lead Time (W)
Therefore, our 2 options are calculated as follows:
WIP A = 14 x 0.5 = 7
WIP B = 8 x 0.75 = 6Option B, with a WIP of 6 is therefore the lower of the two options.

Question 10 of 14
10. Question
Which is better for customers:
 Higher WIP
 Higher Throughput Rate
 Shorter Lead Time
Correct
Well done!
Incorrect
A shorter Lead Time means that customers are getting through the process faster; they don’t care about WIP levels or Throughput Rate, just how quick they are served.

Question 11 of 14
11. Question
Which is better for a business: lower Throughput Rate or higher Throughput Rate?
Correct
Well done!
Incorrect
If a business could choose between getting 100 customers served in a day or 10, they would obviously want the higher number. That’s what Throughput Rate is talking about.

Question 12 of 14
12. Question
Which is better for a customer: a shorter Lead Time or longer Lead Time?
Correct
Well done!
Incorrect
Customers want to get through the process as quickly as possible. Lead Time records the time from start to finish, so it means that a shorter Lead Time is more desirable.

Question 13 of 14
13. Question
Which is better for businesses: higher WIP, higher Throughput Rate or longer Lead Time?
Correct
Well done!
Incorrect
A higher WIP limit does not make any difference to a profit margin and a longer Lead Time means that customers are waiting longer; a higher Throughput Rate means customers are being served more frequently, which is good for a business.

Question 14 of 14
14. Question
(13) If someone said they had a Lead Time of 14 days, in light of Little’s Law, which of the following would you be most surprised by:
 Throughput Rate of 0.5
 Cycle Time of 16 days
 WIP of 7
Correct
Well done!
Incorrect
A Cycle Time will usually be lower than the Lead Time; the latter is from start to finish, while Cycle Time is usually between these points.
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