Inputs are resources used in the process of production.
Some resources are already owned by the business, while others come from suppliers. Here are six categories of inputs:
- Material inputs: raw materials consumed or converted by the transformation process.
- Capital equipment: includes plant, machinery and property necessary to conduct operations.
- Labour: refers to people involved in the operations function.
- Information from a variety of sources: contributes to the transformation process.
- Time: its efficient use are critical to all businesses.
- Money: is generally considered to be the most flexible of all resources because it can easily be converted into any quantity or combination of materials, capital or labour.