Understanding Little’s Law

Little’s law states that the long-term average number L of customers in a stationary system is equal to the long-term average effective arrival rate λ multiplied by the average time W that a customer spends in the system.

{\displaystyle L=\lambda W.}

Where

L = Average number of customers in a stationary system
λ = Average arrival rate in the system
W = Average time a customer spend in the system

In context of an API it means:
L = Average number of concurrent requests system can serve
λ = Average arrival rate of requests in the system
W = Average latency of each request

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