Certified Supply Chain Professional (CSCP) Practice Exam

What does productivity measure?

1. The efficiency of resource utilization in production

2. The overall satisfaction of team members

3. The amount of profit generated versus expenses

4. The effectiveness of marketing strategies

The correct answer is: The efficiency of resource utilization in production

Productivity measures the efficiency of resource utilization in production by evaluating how effectively inputs, such as labor, materials, and energy, are transformed into outputs, typically goods or services. It is a key indicator in supply chain management and operations, as it reflects how well resources are being used to create value. High productivity indicates that more output is being produced with the same amount of inputs, suggesting optimized processes and effective resource management. The other options address different aspects of business performance. Team member satisfaction relates to human resources and organizational behavior, while profit generation in comparison to expenses focuses on financial performance rather than production efficiency. Effectiveness of marketing strategies pertains to how well marketing efforts achieve their goals, again unrelated to the core measure of productivity in production contexts. Thus, the primary focus of productivity is distinctly on how well resources are utilized in the production process.