Input Resource Production Cycle

Understanding Input Resource Production Cycle

Input Resource Production Cycles parallel Subject Resource Production Cycles but supply inputs rather than subject resources, and together the two are what the reference tables’ fishbone diagram depicts feeding into the Central Department Cycle. Like Subject Resource Production Cycles, they can be fulfilled by a firm itself or outsourced to another economic entity, either by purchasing the input as a resource product or by contracting out its production as an activity product; the bakery example (flour, butter, oven, kitchen) illustrates this choice concretely, with functional equivalence between self-performance and outsourcing regardless of which party legally performs the work.