The economic of industrial location

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This book addresses the limitations of traditional location theory in understanding the location-production challenges faced by modern manufacturing and distribution firms, particularly regarding the treatment of time and its associated costs. Firms typically view time costs through the lens of inventory costs, prompting a re-evaluation of industrial location and linkage analysis. By framing these issues in terms of space-time problems, the relationship between input factor prices, market prices, shipment frequency, and distance is clarified. This perspective offers fresh insights into the optimal location of firms and their value-added, regardless of whether local factor prices are fixed or variable. Additionally, the analysis extends to the spatial dynamics of the Just-In-Time (JIT) production philosophy. The author expresses gratitude for the valuable discussions with various colleagues, which have contributed to the development of these ideas. The book includes a preface and an introduction, followed by a comparative analysis of Western and Japanese industrial purchasing linkages, exploring both Western and Japanese purchasing strategies.