Question: 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
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.
Please answer the following:
(A) How many projects is Transtech able to complete per year?
(B) 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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