Productivity can be defined as what ratio?

Productivity is fundamentally defined as the ratio of output to input in a process. This relationship measures how effectively resources (inputs) are being used to produce goods or services (outputs). A higher productivity ratio indicates that more output is generated from a given amount of input, reflecting efficiency within a process.

In operational management, improving productivity is essential because it directly affects a company's ability to increase profitability and serve customers effectively. By understanding this concept, organizations can identify areas for improvement, optimize resource utilization, and ultimately enhance overall performance.

The other options relate to different financial and operational metrics but do not specifically define productivity. Sales revenue to expenses represents profitability, inventory to sales measures inventory turnover, and assets to liabilities assesses financial leverage. None of these directly capture the essence of productivity in the way that the output-input ratio does.