Location Theory of Weber

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Location Theory of Weber
KABIN SARMA, Student (Other), India

What is the location theory of business by Max Weber? Describe the theory of location given by Max Weber.

Least Cost Theory of Industrial Location
Jaap de Jonge, Editor, Netherlands
Hi Kabin, I think you are looking for the Least Cost Theory of Industrial Location (LCTIT) by ALFRED Weber.
Leaning heavily on work developed by the relatively unknown Wilhelm Launhardt, Alfred Weber formulated a theory which tries to explain and predict the locational pattern of industries at a macro-scale. It emphasizes that firms seek a site of minimum transport and labour cost.
In other words, this means that according to Weber, manufacturing firms will be looking for an optimum between these cost components to locate the best place to start their production plants.
Alfred Weber (1868-1958) was a German economist, geographer, sociologist and theoretician of culture whose work was influential in the development of modern economic geography. He was one of seven children born to Max Weber Sr., a prominent politician and civil servant.

Location Theory by Weber
Tyrell Clifford, Manager, Sri Lanka
@Jaap de Jonge: Hi, that's true. It gives competetive advantage to supply with minimum lead time. Also helps to synchronize the supplier delivery directly to the production line. The result is less stock holding.



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