1. Industrial Landscapes Least Cost Location Theory

2. Classification of Manufacturing Industries 1. Processing Industries –Initial Processing Industries A single raw material. Eg. Dairy processing –Complex Processing Industries More than one raw material Eg. Steel making

3. Classification of Manufacturing Industries 2. Fabricating Industries –Assembly of a finished or semi-finished product –Eg. Automobile

4. Least Cost Location Theory By Weber

5. Assumption Isotropic plain (uniform in culture, climate, economic and political system……) Ubiquitous resources are found everywhere Some resources are localized Transport cost is a function of weight and distance Labour has a given pattern of distribution

6. Assumption Markets are fixed at certain specific point Perfect competition exists Industrialists are economic man

7. Building of theory Material Index Location Triangle Location Polygon Isotims Isodapanes / Critical Isodapane Varignon Frame Effects of cheap labour and agglomeration

8. Material Index eg. (To produce 10 tonnes cement) Limestone 11.2 tonnes Clay or shale 2.8 Coal 3.0 Gypsum0.25Total 18.25 --------------------------------------------- Material Index = (18.25/10.00) = 1.825

9. Material Index Material Index > 1.0 (weight-loss) Materials oriented industry Material Index < 1.0 (weight-gain) Market oriented industry Material Index = 1.0 Footloose Industry

10. Location Triangle

11. Location Polygon

12. Isotims – Cost surface

13. Isodapanes / Critical Isodapane

14. Varignon Frame

15. Effect of Cheap Labour Having cheap labour can save $16 additional transport cost. Firm will not be moved to L1 but it will be moved to L2

16. Effect of Agglomeration

17. Demerits Transport Costs –Decline the importance of transport costs –Stepping of Freight Rates –Variations in the Transport Modes

18. Demerits Stepping of Freight Rates

19. Demertis Transport Rate for 3 main carriers

20. Demerits Isotropic plain is not our real world Importance of other properties of raw materials Market is not a fixed point Perfect competition does not exist A Static Model Nature of Industries Mobile nature of labour Economic man

21. Merits Founder of modern industrial location theory Point out transport cost as a key factor to determine industrial location Distinct ubiquitous and localized raw materials Distinct various orientations of different industries Conceptual instrument for understanding the locational patterns of industries