Location Theory of Weber

12manage is looking for contributors...

Supply Chain Design > Forum Log in

Location Theory of Weber
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
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, Member
@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.



  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Supply Chain Design
Best Practices

Expert Tips


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 16-7-2018. All names of their owners.