Final answer:
The processing point for a weight-gaining raw material should be near the final market, as the finished product gets heavier or more expensive to transport during the manufacturing process. Locating the processing point near the final market minimizes transportation costs.
Step-by-step explanation:
The processing point for a weight-gaining raw material should be near the final market. Weight-gaining raw materials are those that get heavier or more expensive to transport during the manufacturing process. In order to minimize transportation costs, it is beneficial to locate the processing point near the final market where the finished product will be sold.
For example, Coca-Cola ships only the concentrated syrup from Atlanta to bottling plants around the world, where local water and other ingredients are added. This allows them to save on transportation costs and ensure freshness of the final product.
Weber's Location Model also supports this idea by considering transportation costs as a key factor in determining the best location for a factory. The model suggests that the factory should be closer to the input or output with the highest transport costs.