Question

Which of the following statements about utilization of a resource is TRUE?

Multiple Choice 

• It is at its maximum when the flow rate exceeds its capacity 
• It is at its maximum when the flow rate is equal to its capacity. 
• It is at its minimum when the flow rate exceeds its capacity.
• It is at its minimum when the flow rate is equal to its capacity 

Answer 1

Option-2 is correct.

Note the definition of utilization as follows:

Utilization of a resource = Flow rate / Capacity of the resource.

Option-1 and 3 are never possible because Flow rate = Min {Demand, Capacity} which means flow rate cannot exceed capacity. Option-4 is also not possible because when Flow rate equals capacity, it means that utilization is 1 or 100%. This is the maximum level that utilization can go. This also makes option-2 correct.