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Material indexThe ratio of the sum of the localized raw material weights to the weight of the finished product.
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Material indexsize: 16px; font-family: Arial, Helvetica, sans-serif"> MI= weight of raw materials needed to produce a unit of finished product
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Material indexThe ratio of the sum of the localized raw material weights to the weight of the finished product.
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Material indexMaterial index is the ratio of weighted products used by industries to choose the best or ideal location where cost can be minimized.in other words,it is the measurements of output produced using a given amount of raw materials to determine an industry location.e.g if output obtained is less than 1, the industry will locate near the source of raw materials but if greater than 1 it can locate near the market but if exactly 1 the industry can locate anywhere.
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