The function of obtaining inputs from external suppliers to support production.

• A. Production Process
• B. Purchasing
• C. Capital Intensive
• D. Productivity

Answer: (B)

Obtaining inputs from external suppliers to support production is the purchasing function. It covers sourcing materials, negotiating prices and terms, placing orders, and managing supplier relationships to ensure reliable delivery, quality, and cost efficiency. This function sits before production, supplying the raw materials and components needed for manufacturing. It’s different from the production process, which transforms inputs into outputs; it’s not about the level of capital investment (capital intensive) or about measuring how efficiently inputs are turned into outputs (productivity). Good purchasing helps prevent stockouts, control costs, and keep production running on schedule.