The Capacity strain index describes how “strained” the OOH network is.
It represents the relation between potential demand or location coverage and the maximum volume they can serve over a given time period.
How it’s calculated
Capacity strain index = Potential items (within a certain distance) / Available capacity (for the selected date range)
How to interpret it
< 1 → capacity is sufficient for potential demand
> 1 → capacity is likely insufficient (the network may be strained)
Potential items is the potential demand for each location (e.g., the potential number of shipments that could be delivered to the location, or the potential number of people the location can serve).
Each location has:
Exclusive potential - the number of shipments or people within a certain radius
Shared potential - the number of shipments or people shared between two or more locations within a certain radius (overlap zone potential)
Shared potential is weighted because we can't assume all shared demand will go to one location. The weighting coefficient is:
W = 1 / N
Where N= number of existing locations and pins (with defined capacity) that cover the same demand area
How it’s calculated
Potential items (within a certain distance) = Exclusive potential + (Shared potential × 1/N)
Example:
Imagine we have two lockers (N=2) that overlap:
Locker A's coverage within 500m = 1,200 potential items
Locker A exclusively covers = 1,000 potential items
Lockers A and B share = 200 potential items
→ Potential items for Locker A = 1,000 + (200 × ½) = 1,100
This represents the maximum available capacity over the selected date range.
Capacity is treated as something that can be replenished over time (for example, a locker can be refilled). We estimate a theoretical maximum based on daily capacity.
How it’s calculated
Available capacity = Daily location capacity × Number of days (in the selected date range)
Example:
Daily capacity for Locker A = 60 shipments
Selected date range is Feb 1 - Feb 7
→ Available capacity = 60 × 7 = 420 shipments
The cannibalization index measures how much of a location’s potential demand is shared with nearby locations.
How it’s calculated
Cannibalization index = ((Shared potential × 1/N) / Potential items ) × 100
Example:
Imagine we have two lockers (N=2) that overlap:
Locker A's coverage within 500m = 1,200 potential items
Locker A exclusively covers = 1,000 potential items
Lockers A and B share = 200 potential items
Potential demand for Locker A = 1,000 + (200 × ½) = 1,100 items
→ Cannibalization index for Locker A = ( (200 × ½) / 1,100)) × 100 = 9.09%
How to interpret it
0% → no overlap
50%+ → significant overlap
100% → fully overlapped; entirely within other locations’ catchment areas
Utilization shows how much volume a location is handling relative to its capacity.
How it’s calculated
Utilization = (Delivered and picked up shipments / Available capacity) × 100
How to interpret it
0-25% → unused or low utilization
40%+ → well-used location
