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Transtech Inc produces transformers

Business Sep 06, 2022

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.

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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