Certified Logistics Associate (CLA) Practice Test 2025 – All-in-One Guide for Exam Success!

The term that accurately describes how effectively an organization uses its productive capacity is capacity utilization. This concept refers to the ratio of actual output to potential output, indicating how well an organization is using its resources to produce goods or services. A high capacity utilization rate suggests that an organization is operating efficiently, maximizing its capabilities and minimizing waste, while a low rate could indicate inefficiencies or underutilization of resources.

Production capacity refers to the maximum output an organization can achieve under normal conditions, but it does not measure how effectively that capacity is utilized. Supply chain efficiency encompasses a broader range of metrics, including transportation and logistics performance, rather than focusing solely on the productive capacity of an organization. Resource productivity relates to how effectively a specific input is converted into output but does not directly measure the overall capacity utilization of the organization as a whole. Thus, capacity utilization is the most precise term in this context.