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Starter

What did you do this break?

Did you study something (EXTRA)

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Weber’s Least Cost Theory

Where you going to put the factory/Plant

“Situation factors”

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Alfred Weber

1909: Developed a theory to try to describe the industrial locations of certain industries.

Based on transportation costs

“Least cost theory”

Simplification of reality

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Least cost theory

  • Suggests….
    • Companies building an industrial plant need to take into consideration the source of raw materials and the market for the product.
      • Thus, the weight of the raw materials and the finished product will determine the location of the production facility for that company
          • Sound familiar????

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The triangle

  • The base of the triangle consists of…
  • Two raw materials necessary for the production of the product.
  • The production point
  • Market

Situation factors

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Weber’s Least Cost Theory

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Weight-gaining (Bulk Gaining)

If the product being produced is a weight-gaining industry, then the industrial production point will need to be located closer to the market to minimize the transportation costs associated with a heavy product.

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Weber’s Least cost theory-Weight Gaining

Examples of weight-gaining industries????

Come up with your own triangle

See page 390

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Weight-reducing industry (Bulk-Reducing Industry)

the industrial production point will need to be located closer to the raw materials.

Why???

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Weight Reducing

Weight-reducing industry examples????? Come up with your own triangles!

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Please note!

  • Many of the resource-oriented industries are weight-reducing industries. Weight-Reducing industries try to minimize the costs of hauling heavy materials, such as ore long distances by placing their industrial production points closer to where the resources are located. MINES.
  • https://www.youtube.com/watch?v=lE7SXX04EGo

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Brick Bunny

The brick bunny is built with two primary products: bricks and feathers.

Draw weber’s least cost theory triangle to illustrate where you would put the bricks, feathers, production point and market…..

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Check your work

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Weber’s assumptions...

  • The industrial production point must be located somewhere within the triangle.
  • All parts of the triangle must be uniform
  • Areas inside the triangle have the same political, cultural, and economic values.
  • (Sound familiar????)))
  • The availability of transportation is equal in all parts of the triangle

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More assumptions

  • What happens when a variety of materials is needed for the production????
  • He suggest that all of the industry occurs within the same national boundaries…. (think of supranational organizations and Transnational Companies???)

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Single-Market Manufacturers

  • Specialized manufacturers with only one or two customers
  • Producer of parts for motor vehicles
  • Auto alley

Other ideas

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Perishable products

Located near markets. Sound familiar?

Newspapers

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Page 393

Changing Distribution of world steel production

Compare maps on page 393

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HW

Read key Issue 1

  • What was the importance of transportation, textiles, chemicals, and food processing during the industrial revolution?
  • How are fossil fuels created?
  • What are the top three fossil fuels consumed globally?

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On the maps you received in class today….

Copy down the following regions on your maps: Make sure you include what the region is known for.

Mid-Rhine, Rhine-Ruhr Valley, PO Basin, St Petersburg, Donetsk and United Kingdom

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U.S

Mohawk Valley

Middle Atlantic

New England

Southern California

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East Asia

China

South Korea

Japan

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Day 2 Shipping

Starter read page 394 and examine the maps.

“Situation factors”

https://www.youtube.com/watch?v=Gn7IoT_WSRA

FOR SITE FACTORS SEE KEY ISSUE 3

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Just-in-time delivery

  • Parts are delivered to the assembly plant just in time to be used, often within minutes, rather than weeks or months in advance
  • Car seats
  • Anything else?