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  2. Cement ingredients, Was: cement travel

Re: Cement ingredients, Was: cement travel

james murrie
 

Jeff;
Many moons ago when I was getting my MBA degree the rule of thumb was that you wanted to "long haul" the raw materials (low value goods) and "short haul" the finished product (i.e. high value goods). I don't remember all the reasoning anymore, but I'm sure at least one reason had to do with the way freight tariffs were set back then.
Jim Murrie

--- In STMFC@..., "Aley, Jeff A" <Jeff.A.Aley@...> wrote:

Mike,

Should a factory be located near the raw materials, near the customers, or near a source of transportation?

In the case of cement, the plant tended to be near the raw materials.
In the case of soda ash, the plant tended to be near the customers.
In the case of beef, the plant tended to be near the transportation (but the "branch houses" were near the customers).

Regards,

-Jeff
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