Utilization in services may be lower because of
A) variability in customer arrivals
B) variability in customer needs
C) both A and B
D) none of the above

Question

Quizplus · Accepted Answer

Both A and B are factors that can contribute to lower utilization in services. Variability in customer arrivals means that there may be times when there are too few customers to keep the service providers busy, while at other times, there may be too many customers for them to serve effectively. Variability in customer needs means that some customers may require more time and attention than others, and this can create imbalances in how effectively the service can be delivered. Together, these factors can lead to inefficiencies and lower levels of utilization in service settings.

Utilization in Services May Be Lower Because of