Short note on Raw Materials

Ubiquitous raw material found everywhere as e. water, air, soil, etc.

Localised raw material are confined only in s selected places on earth e.g. iron ore, bauxite, c etc.

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Raw material is termed as pure or non-we’ losing when the weight of the raw material remai same even after manufacturing process, impure or weight loosing raw material are which loose weight after manufacturing.

Least Transport Cost Point (L.T.C.P.) determined b\ weight of raw materials to be assembled \ weight of the final product to be shipped and the distances over which the materials and the pr^r have to be moved. This combination leads to simple index of cost tonne-km.

Then the problem is to find the point where tonne mileage is minimised. This point can be found using Weber’s Locational locational triangle.

Weber sought to explain Least Cost Location (L.C.L.) whether near raw material, or near market. This can be devised using Material Index (Ml) formula

Material index = wt of localized of product Circumstances that distract away from this point Role of labour

If the cost of labour/unit product is less than it is at the optimum transport location because of closing of an established firm, high population growth, pool of skilled labour, and then the labour will attract the industry to its place.

Any location within the 15p isodapane would save more on labour than would be spent on extra transport; therefore L_b would be more profitable locations than P.

Coast contours of 15p: Critical Isodapane where increased transport costs balance savings on labour cost. Least transport cost point L_h and L₂– cheap labour which would reduce cost by 15p/production.