Alfred Weber1868-1958

August BiondiD Period

Alfred Weber

• Early Life

- Born in Erfurt, Germany (Prussian Saxony)

- Raised in Charlottenburg, Germany

- Second of seven children

• Influences

- His father was a politician (city magistrate). Prominent scholars and public figures were constantly influencing him.

• Education

- Attended University of Berlin

- Obtained his doctorate in 1895

- Was a professor at the University of Heidelberg for the majority of his career

- He was an economist, then became a sociologist

Least Cost Theory (1909)

• Describes how/where to find the optimal location for a manufacturing firm. Its purpose it to place a firm in a location where the final cost of transportation, labor, and materials are minimized.

• A firm is located where costs are the least.

• A firm is placed in relation to raw materials and the market.

“Theory of Industrial Location”

Least Cost Theory

Three Catergories of Cost:• Transportation- best site is where the cost to transport

raw materials and finished product is the lowest• Labor- high labor costs reduce profit. Locations that

offer cheap, non-union labor make up for transportation costs

• Agglomeration- when a group ofindustries collaborate for mutual benefits (services, facilities). Can lower costs - Deglomeration- occurs when companies/services leave because of over concentration of industries

Least- Cost Theory

Weight- Losing Case

• Weight of final product is less than the weight of the raw materials

• For this case it is best if the firm is located near the source

Weight- Gaining Case

• Weight of the final product is heavier than the raw materials

• For this case it is best if the firm is located near the market

Least Cost Theory

Weight- Gaining Case

Weight-Losing Case

ACTIVITY:Determine where the firm goes based on the

cost scenario by placing the firm in the optimal location.

Raw MaterialRaw Material

Weight Losing Case

Weight Gaining Case

MarketMarket

Firms:

For Further Information

CHAPTER 11- Pages 350-368

Discusses:Industry Distribution

- Industrial RegionsSituation Factors

- Proximity to markets, inputs, and when to use different transportation typesImportance of Site Factors

- LaborLand and Location Factors

- Rural, environmental, capital

Bibliography

• "Alfred Weber's Theory of Industrial Location." Alfred Weber's Theory of Industrial Location. Pinterest. Web. 15 Sept. 2015. <http://teacherweb.ftl.pinecrest.edu/snyderd/APHG/Unit%207/weber.htm>.

• "Alfred Weber." Wikipedia. Wikimedia Foundation, 17 May 2015. Web. 15 Sept. 2015. <https://en.wikipedia.org/wiki/Alfred_Weber>.

• "CSISS Classics - Alfred Weber: Theory of the Location of Industries, 1909." CSISS Classics - Alfred Weber: Theory of the Location of Industries, 1909. Web. 14 Sept. 2015. http://www.csiss.org/classics/content/51.

• Gale, Thomas. "Weber, Alfred." Encyclopedia.com. HighBeam Research, 01 Jan. 1968. Web. 15 Sept. 2015. <http://www.encyclopedia.com/topic/Alfred_Weber.aspx>.

• Rubenstein, James M. The Cultural Landscape: An Introduction to Human Geography. Upper Saddle River, NJ: Pearson/Prentice Hall, 2005. Print.

Images:

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