Question

The transportation model, when applied to location analysis:

a) minimizes the movement of goods.
b) minimizes total transportation costs.
c) minimizes total production and transportation costs.
d) maximizes revenues.
e) minimizes total fixed costs.

Answer 1

The transportation model in location analysis is aimed at minimizing total transportation costs, as reflected in Weber's and Von Thünen's models, while also considering other factors like the economies of agglomeration. Option b. is correct.

Step-by-step explanation:

The transportation model, when applied to location analysis, primarily aims to minimize total transportation costs. This involves determining the optimal placement of facilities like factories or warehouses to ensure that the transportation costs of both raw materials and finished goods are kept as low as possible. Alfred Weber's Least Cost Location Model is an early example of these principles in practice, emphasizing the importance of being near suppliers or markets with high transport costs to reduce overall expenses.

Von Thünen's Model also provides insight into how transportation costs influence the decision-making process, particularly for agricultural production. However, it must be noted that while transportation is a key factor, it is not the only consideration; some models also account for the economies of agglomeration and factors like technology that can impact these traditional models.