Distribution Capacity Planning: The Long‐Term Problem

How large should a distribution facility be initially? What size additions to the facility should be planned and when? For example, should a regional distribution centre be built to accommodate the projected inventory volume at the time of its completion or the projected volume some five, ten or fifteen years in the future? Should investments in the building and the materials handling system coincide or be planned separately? Finally, can planned expansions be economically postponed by temporarily leasing outside space or by temporarily expanding the work force to achieve above‐capacity utilisation of the existing facility?