## Section 2 Description ### Measuring Capacity Across the Network This section explains how supply chain capacity can be measured, compared and interpreted across different parts of the network. Learners move from general capacity concepts into practical measures such as **theoretical capacity, available capacity, effective capacity, capacity required, utilisation, spare capacity, capacity gaps, headroom, throughput rate and cycle time**. The section also explores the relationship between **demand profiles and capacity load**, showing why average demand can be misleading and why capacity must be assessed against daily, weekly, seasonal, regional and time-window demand patterns. Learners will understand how demand is converted into workload and why different processes require different demand drivers. Finally, learners examine **bottlenecks and constraints**, including how to identify the point that limits flow, distinguish symptoms from root causes, and recognise when high utilisation, queues, backlog or missed cut-offs indicate capacity risk. By the end of this section, learners will be able to measure capacity more confidently, interpret demand-driven workload, identify bottlenecks and explain where the supply chain network is most likely to become constrained.

Section 3 Description Building a Practical Capacity Model This section shows learners how to move from capacity theory into practical modelling. It explains how to build a simple, structured and decision-focused supply chain capacity model that can be used to assess whether a process, site, supplier, transport route or wider network has enough capacity to meet demand. Learners begin by defining the model scope, including the decision question, process boundary, time horizon, demand input, service requirement and assumptions. This ensures the model remains focused, usable and relevant to the decision being made. The section then explains the key model inputs required, including demand profiles, work content, labour availability, supplier capability, transport capacity, productivity rates, downtime, yield, lead times and data quality. Learners will understand why reliable inputs are essential and how weak assumptions can affect the model output. Learners then work through the core model calculations, including capacity required, available capacity, effective capacity, utilisation, spare capacity, capacity gaps, bottleneck identification and additional resource requirements. The section uses practical examples that can be built in Excel or similar spreadsheet tools. Finally, learners explore how to present the model clearly through dashboards, RAG status, scenario summaries, assumptions tables and evidence-led recommendations. The focus is on turning model outputs into insight that managers and decision-makers can understand and act upon. By the end of this section, learners will be able to define, build, calculate and present a practical capacity model that supports better supply chain decisions.

## Section 4 Description ### Using Capacity Models to Improve Supply Chain Decisions This section shows learners how to use capacity models as practical decision-making tools rather than one-off analytical exercises. It explains how model outputs can be used to test scenarios, interpret bottlenecks, make evidence-led recommendations and embed capacity thinking into everyday supply chain management. Learners begin by exploring **scenario testing**, using “what if?” analysis to understand how demand growth, labour shortages, supplier disruption, transport constraints, productivity changes and peak periods affect network capacity. This helps learners assess risk before service failure occurs. The section then explains how to **interpret bottlenecks**, moving beyond simply identifying the constrained process to understanding why the bottleneck exists, whether it is temporary or structural, and how it affects cost, service, lead time, backlog and resilience. Learners then develop the ability to make clear **capacity recommendations**, linking model evidence to practical actions such as adding labour, improving productivity, smoothing demand, increasing supplier capacity, securing transport, reducing rework or changing service promises. Finally, the section explains how to **embed capacity modelling into routine supply chain management**, including S&OP, warehouse planning, supplier reviews, transport planning, inventory decisions, peak planning, resilience reviews and business continuity planning. By the end of this section, learners will be able to use capacity models to support better decisions, prepare for uncertainty, reduce service risk and build more resilient supply chain operations.

Final Knowledge Check Modelling Supply Chain Network Capacity Covers Sections 1, 2, 3 and 4