Capacity Planning

Term from Logistics Consulting industry explained for recruiters

Capacity Planning is a key business process where professionals analyze and determine the resources needed to meet customer demand. This could include warehouse space, transportation vehicles, workforce, or production capabilities. Think of it like planning seating at a restaurant - you need to know how many tables, servers, and kitchen staff you need during busy times versus slow times. In logistics and supply chain, Capacity Planning helps companies avoid bottlenecks, reduce costs, and ensure they can handle both current and future business needs efficiently.

Examples in Resumes

Led Capacity Planning initiatives resulting in 30% improvement in warehouse efficiency

Developed Capacity Planning models for a network of 12 distribution centers

Implemented Capacity Planning and Resource Planning strategies that reduced operational costs by 25%

Typical job title: "Capacity Planners"

Also try searching for:

Supply Chain Analyst Operations Planner Resource Planning Manager Logistics Analyst Supply Chain Planner Operations Analyst Demand Planner

Example Interview Questions

Senior Level Questions

Q: Can you describe a time when you had to manage a major capacity planning project that involved multiple facilities?

Expected Answer: Look for answers that demonstrate experience in managing complex planning scenarios, coordination across different locations, and measurable results in improving efficiency or reducing costs.

Q: How would you approach implementing a new capacity planning system in an organization that has never had one?

Expected Answer: Strong answers should include stakeholder management, change management, data collection methods, and a step-by-step implementation approach with clear milestones.

Mid Level Questions

Q: What factors do you consider when creating a capacity plan?

Expected Answer: Candidate should mention demand forecasting, seasonal variations, resource availability, budget constraints, and operational limitations.

Q: How do you handle unexpected spikes in demand when planning capacity?

Expected Answer: Look for understanding of flexible resources, contingency planning, and ability to prioritize and reallocate resources quickly.

Junior Level Questions

Q: What tools have you used for capacity planning?

Expected Answer: Should be familiar with basic planning tools like Excel, possibly some enterprise resource planning (ERP) systems, and understand basic forecasting concepts.

Q: How do you calculate basic capacity requirements?

Expected Answer: Should demonstrate understanding of simple calculations involving time, resources, and demand levels.

Experience Level Indicators

Junior (0-2 years)

  • Basic forecasting and planning concepts
  • Data collection and analysis
  • Understanding of supply chain basics
  • Experience with planning tools and spreadsheets

Mid (2-5 years)

  • Advanced resource allocation
  • Project management
  • Performance metrics analysis
  • Stakeholder communication

Senior (5+ years)

  • Strategic planning
  • Team leadership
  • Complex system implementation
  • Cross-functional coordination

Red Flags to Watch For

  • No experience with data analysis or forecasting
  • Poor understanding of supply chain operations
  • Lack of project management experience
  • Unable to explain basic capacity calculations