Low rates of capacity utilization in service organizations are never appropriate. Group of answer choices True False

False

Explanation:

The capacity utilization rate is found by dividing used capacity by the total capacity operating level.

Since services cannot be stocked, the ideal scenario would be to operate at full capacity every single day, but that is not possible. I'm not sure if there is any service company in the world that operates at full capacity all the time, not even Magic Kingdom or Disneyland.

But that doesn't mean that it is always bad to operate at low capacity levels, since every service company must regularly perform maintenance operations, e. g. a hotel must be painted and other repairs must be made.

Also, many services are seasonal, e. g. you do not sky all year long, only during winter, and the opposite applies to the beaches and other parks.