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INDUSTRIAL LOCATION
Keniesha Brown
Assumptions
M
LRM
(pure)
U Ubiquitous raw material
LR LRM
M (pure)
Least-cost
location
M Market
STRAIGHT LINE DIAGRAM
One ubiquitous and one gross RM
U
U
U
LRM U
(gross)
U Ubiquitous raw material
LR LRM
M (pure)
Least-cost
location
M Market
LRM
(pure) Localised Raw
Material
Least-cost location
M (pure)
M Market
One pure
RM, one M
gross RM
LRM
Solutions to Weber’s
Location Problems
FACTORS AFFECTING
PRODUCTION COSTS
E.g., At X, TTC = 3 + 2 + 2 = 7
Alfred Weber, 1909
Labour costs - Isodapanes
Isodapane
Line of total transport costs
Determined by summing the value of all isotims at a point
And joining all points of equal total transport costs
AGGLOMERATION
Industrial location may be swayed by agglomeration
economies. The savings which would be made
if, say, three firms were to locate together, are calculated
for each plant. The isodapane with that value is drawn
around the three least-cost locations. If these
isodapanes overlap, it would be profitable for all three to
locate together in the area of overlap.
Alfred Weber, 1909
Overlapping critical isodapanes
Agglomeration
economies
Stage 2 - add in Agglomeration
Economies