Which of the following statements about utilization of a resource is TRUE? Multiple Choice It is...

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

Solutions

Expert Solution

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.

Amanda K answered 1 year ago

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