Capacity utilization should always aim to be 100 percent.

Question

Quizplus · Accepted Answer

While it may seem efficient to operate at 100 percent capacity utilization, it can actually be counterproductive in the long run as it leaves no room for unexpected changes or fluctuations in demand. Additionally, it can lead to increased maintenance costs and decreased product quality. It is often more practical and profitable to aim for a slightly lower, but still efficient, capacity utilization rate.

Capacity Utilization Should Always Aim to Be 100 Percent