Productivity increases when inputs __________ while outputs __________.

Productivity is a measure of how efficiently inputs are converted into outputs. It is commonly expressed as the ratio of outputs produced to inputs used. For productivity to increase, a key principle is that either the efficiency of resource usage improves or the output increases relative to the inputs.

The correct choice indicates that productivity increases when inputs decrease while outputs remain the same. This scenario means that you are using fewer resources (inputs) to achieve the same level of production (outputs), which reflects a more efficient use of resources. When this happens, productivity inherently rises because you are effectively getting more output per unit of input.

In terms of the other options:

• If inputs increase while outputs decrease, this indicates inefficiency since more resources are being consumed for less output.
• If inputs remain the same while outputs increase, this would also increase productivity, but the provided answer specifically addresses a scenario where resource usage is minimized, which is often a primary goal in operations management.
• Finally, if both inputs and outputs decrease, there is no change in productivity since the ratio is maintained, which does not signify an improvement in efficiency.

Thus, the principle that productivity improves with a reduction in inputs while outputs remain constant underscores a crucial concept in supply chain and operations management, emphasizing efficiency and