1. AIM: How does Weber’s theory of the Location of Industries aid in the positioning of factories and manufacturing plants?
Do Now: Imagine that a group of assassins have snuck into your home and ordered you to open a manufacturing plant or face death. They also tell you told you that if you do not produce a profit, they will chop off your leg. (Incentive for those of you who would never want to open a factory) . You are allowed to produce whatever you want. What would you produce and where would you locate your factory in relation to the inputs and the market?

2. Why might a manufacturer favor ships, rails trucks or air to distribute their goods?
Firms often seek the lowest-cost mode of transport.
The farther something is transported, the lower is the cost per kilometer.
Trucks – short distance delivery, can be loaded and unloaded quickly and more cheaply than trains
Trains – longer distance
Ships – attractive if a water route is available. Very cheap.
Air – most expensive, but fastest.

3. Break of Bulk Points
Costs rise each time inputs or products are transferred from one form of transportation to another
Trucks  Planes  Trucks  Store
A Break-of-Bulk point is a location where transfer among transportation modes is possible.
Seaports, airports
Baltimore and New York are Break-of-Bulk Points.

4. Break-of-Bulk Points
Regardless of transportation mode, cost rises each time that inputs or products are transferred from one mode to another.

5. Alfred Weber: “Theory of Location of Industries”

6. If both raw materials weigh the same and are bulk reducing, the point of production should be located between the fixed materials to lower transport costs.

7. Where should it be located if it is weight gaining?

8. Bulk-Gaining

9. How should the triangle look if the product is weight reducing?

10. Bulk Reducing

11. How should the triangle look if the product is a brick bunny?

12. The Brick Bunny is a fictional product with 2 primary inputs: bricks and feathers. Because the bricks weigh much more than the feathers, the producer will put the production point closer to the bricks to minimize the transport cost.

14. Brick Bunny

15. How does Weber’s model ignore reality?

16. Similarities to Von Thunen?