On Role of Planning and Control Components in Mutually Connected Business Processes

Mutually connected business processes have both logistics process and planning and control components. The Little's theorem describes that for a queuing system in stationary situation, average demand rate multiplied by average number of inventory is average lead time. This paper shows what role a planning and control component plays in forming such a dynamic property of a business process as a whole. Some relation among lead time, planning cycle and release of orders will be considered. It is shown that "slow planning" leads the whole connected business process to slow behavior with thick inventory.