Lato-kosero

What is Production? Production is basically an activity of transformation , which connects factor inputs and outputs. The process of transforming inputs into outputs can be any of the following kinds:  • Change in the Form(Raw material transformed to finished goods ) • Change in Place( Supply chain, Factory to Retailer) •With these three kinds of transformations, usability of the good or materials increases. •Production is an activity that increases consumer usability of goods and services. Basic Concepts of Production Theory: Classifications of Inputs (i) labour (ii) capital (iii) land (iv) raw materials (v) time.  These variables are measured per unit of time and hence referred to as flow variables. Entrepreneurship  has been added as part of the production inputs, though this can be measured by the managerial expertise and the ability to make things happen. Basic concepts of Production Theory • An input is a good or service that goes into the production process. As e