How the capacity utilization is influenced by seasonal demand and how it is improved?

Capacity utilization is influenced by seasonal demand as businesses often experience fluctuations in customer needs throughout the year, leading to variations in production levels. During peak seasons, demand increases, prompting firms to maximize their output and improve capacity utilization. To enhance this, companies can implement strategies like flexible workforce management, optimizing inventory levels, and investing in scalable production technologies, allowing them to better respond to seasonal changes and maintain efficient operations year-round.