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What is the relation between infrastructure/roads and industry output? Where does supply come from?

Supply sources are bases (including airstrips and piers) and cities. The supply strength output is based on size and this supply level spreads out, weakening for each hex away from the source. To view the supply level use hotkey < S >. Roads and rails decrease the "loss" incurred for each hex crossed making a supply source reach farther. Industry output is affected by supply levels so building a road to an industry allows more supply to reach it causing output to go up. Infrastructure quality relates directly to the level of supply generated. If all funding is cut, supply will decrease and eventually be cut off within a region