01Define zones and capacity units
List facility, zone, location type and operational purpose. Choose a verified unit for each zone and document conversions. Separate receiving, staging, reserve, forward pick, quarantine, return, packing and dispatch. A pallet position is not interchangeable with a floor square metre or a carton cubic measure without configuration and clearance assumptions. Keep unavailable and temporary locations visible.
02Establish qualified usable capacity
Start from approved rack, floor, equipment and facility records. Deduct aisles, exits, fire protection, pedestrian routes, equipment clearance, damaged racks, blocked locations and segregation needs. Record weight, dimension, stack, temperature, security and incompatibility limits. OSHA advises that rack and shelving capacities not be exceeded; planning cannot treat an unsafe or unknown position as spare capacity. Separate permanent loss of capacity from a temporary block and record the expected return date. Test whether location master data counts positions that no longer exist or excludes recently commissioned positions. Use the lowest approved constraint when weight, volume, height and package count give different answers.
03Build the dated load baseline
Measure on-hand by product, package, status, ownership and location. Add accepted inbound, scheduled receipts, transfers, returns and quarantine; subtract planned shipment or disposal only at the realistic event time. Use packaging dimensions and units from controlled master data. Reconcile totals to inventory reports and investigate stock in unknown or invalid locations before using the baseline.
04Model flow and dwell time
For each day or shift, estimate arrivals, unloading, inspection, staging, putaway, replenishment, picks, packs and dispatches. Record processing rate, operating hours, batch or wave timing and typical dwell. Test dock, staging, picking and packing capacity separately from storage. A weekly net inventory number can hide a same-day inbound and outbound overlap that physically fills the floor. Distinguish labor, equipment, door, staging-position and system throughput. Add changeover, battery charging, inspection, paperwork and exception time where it materially constrains flow. Do not convert a temporary overtime result into a permanent rate without proving it can be repeated safely.
05Run base, peak and disruption scenarios
Model expected, high-demand, supplier bunching, delayed carrier, equipment outage, quarantine surge and return peak where relevant. State assumptions and confidence rather than presenting one forecast as certain. Identify the first constrained zone, timing, duration and downstream effect. Do not assume every location can hold every product or that overflow can use egress, aisle or unapproved floor space. Include one combined scenario where inbound remains high while outbound is delayed, because independent peaks may overlap. Test the recovery period after the peak, not only the worst hour. A plan that survives one shift but leaves three days of unprocessed stock is not a stable capacity solution.
06Approve actions and trigger levels
Set observable triggers, decision owners and lead times for schedule changes, slotting, exception clearing, extra shifts, temporary equipment, approved overflow, supplier appointments or external storage. Compare safety, product compatibility, security, system visibility, handling, transport, cost and reversibility. Validate a third-party site before sending stock; extra space without inventory control can move the problem elsewhere.
07Monitor forecast and recover
Track usable occupancy, receiving and dispatch staging, dwell, putaway backlog, replenishment shortage, pick and pack throughput, blocked positions and service failures. Compare forecast to actual by date and cause. Close temporary space or process changes through controlled transfer and inventory reconciliation. Update assumptions only after explaining the variance, not simply to make the next forecast match.