Final answer:
A purchase requisition is an internal document used to authorize the release of materials or inventory for use in a production process, not to determine who ultimately receives the produced goods and services. It is a tool for managing inventory and ensuring orderly workflow in a manufacturing setting.
Step-by-step explanation:
A purchase requisition is a document used within many businesses to authorize the release of materials or inventory. It is not necessarily a tool for determining who will receive the final goods and services in the production process; instead, it is an internal control mechanism used to manage inventory and ensure that materials are released to specific individuals or work centers according to plan, usually within a manufacturing or production setting. For example, a purchase requisition in an assembly plant authorizes the storekeeper to release specific parts needed for a particular stage of assembly.
In terms of distribution to consumers, the market dynamics dictate who eventually receives the goods based on demand and purchasing power. However, in the context of a production process, the requisition is more about inventory control and coordination within the business itself, rather than with end consumers. This internal process can be critical; as an example, the use of just-in-time delivery and lean inventory strategies can amplify the impact of disruptions, such as labor strikes, by halting the entire supply chain, as was the case with a unionized factory's strike in Dayton, Ohio in the 1990s, which caused a shutdown of General Motors assembly plants.