Question

5. Cite some of the elements of Weber’s Material Orientation theory.

Answer 1

Alfred Weber formulated a theory of industrial location where the transportation costs of raw materials and the final product are to be at its minimum as per its material orientation for the operations. In one the weight of the final product is less than the weight of the raw material going into making the product. Hence in this context the elements of the Material orientation are:

• A location which thus develops the cost of the supply chain and the suppliers for the best of operational benefits,

• The materials coming in are of more weight and thus would need more cost while the outputs would be less of weight and need proper distribution which is again a cost-related issue.

• The topography, climate, temperature have its own cost while if it’s been assumed that it’s for a single market alone in the theory that would relay its cost of material orientation for the business in that market.

• The maximization of the utility has made the location aspect so important in the theory as the cost and availability are the issues that can be a challenge or an issue of competence for a business.