Interviewer view · keep this screen to yourself

Build big now, or build in phases?

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A logistics company plans a cold store in Dammam, Saudi Arabia, using the three scenarios in the table above. Option Big: 100 thousand pallet places, fixed costs of SAR 45 million a year. Option Phased: 60 thousand places now, fixed costs of SAR 28 million a year, with land and permits ready to add 40 thousand more later. Each stored pallet adds SAR 200 a year of variable cost. Compare yearly operating profit in each scenario. (Fictional company, illustrative figures.)

The prompt refers to Exhibit 1. After reading it, say: "Open Exhibit 1 now."

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Profit = pallets stored x (price minus SAR 200) minus fixed costs, in each scenario
- Pallets stored = the lower of demand and capacity
- Profit of each option in each scenario
- Key: Expected profit and worst case
- A trigger for expanding later

Exhibit 1

The prompt uses this exhibit, so the candidate opens it right after you read the prompt ("Show exhibit 1" on their screen).

Three futures for cold storage demand in Dammam (illustrative)

Three futures for cold storage demand in Dammam (illustrative)
Scenario	Chance (percent)	Pallets stored (thousands)	Price per pallet a year (SAR)	What would cause it
Upside	25	85	1,000	Food imports and online grocery grow fast
Base	50	70	900	Growth carries on at today's pace
Downside	25	45	800	A rival opens nearby and prices fall

So-what

In the downside both volume and price fall together, which is what makes a scenario different from changing one number.

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Big, upside
What a strong candidate does: 85 thousand pallets x SAR 800 margin, minus SAR 45 million (all in SAR millions).
Big, upside profit (SAR millions): 85 × (1,000 - 200) ÷ 1,000 - 45 = 23
Step 2: Big, base
What a strong candidate does: 70 thousand x SAR 700, minus 45.
Big, base profit (SAR millions): 70 × (900 - 200) ÷ 1,000 - 45 = 4
Step 3: Big, downside
What a strong candidate does: 45 thousand x SAR 600, minus 45.
Big, downside profit (SAR millions): 45 × (800 - 200) ÷ 1,000 - 45 = -18
Step 4: Phased, upside
What a strong candidate does: Capacity caps storage at 60 thousand.
Phased, upside profit (SAR millions): min(85; 60) × (1,000 - 200) ÷ 1,000 - 28 = 20
Step 5: Phased, base
What a strong candidate does: Still capped at 60 thousand.
Phased, base profit (SAR millions): min(70; 60) × (900 - 200) ÷ 1,000 - 28 = 14
Step 6: Phased, downside
What a strong candidate does: 45 thousand fit easily.
Phased, downside profit (SAR millions): min(45; 60) × (800 - 200) ÷ 1,000 - 28 = -1
Step 7: Expected profit, Big
What a strong candidate does: 25, 50 and 25 percent weights.
Expected profit, Big (SAR millions): 0.25 × 23 + 0.5 × 4 + 0.25 × -18 = 3.25
Step 8: Expected profit, Phased
What a strong candidate does: The same weights.
Expected profit, Phased (SAR millions): 0.25 × 20 + 0.5 × 14 + 0.25 × -1 = 11.75
Step 9: Expansion trigger
What a strong candidate does: Expand when the phased store is 90 percent full for two quarters in a row.
Trigger (thousand pallets): 60 × 0.9 = 54

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Build in phases. The phased store earns more in the base case (SAR 14 million against 4 million a year), loses almost nothing in the downside (1 million against 18 million), and gives up only SAR 3 million in the upside. Its expected profit is about SAR 11.75 million a year against 3.25 million for building big, and that is before counting the lower building cost. The big store only wins if the upside arrives, and even then the phased store can catch up by expanding. Set a signpost: start the second phase when more than 54 thousand pallets are stored for two quarters in a row. The risk is that building later costs more or takes too long; agree the expansion design and permits now so the second phase can start quickly.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.