Facility location and supply chain management – A review

Abstract

Facility location decisions play a critical role in the strategic design of supply chain networks. In this paper, a literature review of facility location models in the context of supply chain management is given. We identify basic features that such models must capture to support decision-making involved in strategic supply chain planning. In particular, the integration of location decisions with other decisions relevant to the design of a supply chain network is discussed. Furthermore, aspects related to the structure of the supply chain network, including those specific to reverse logistics, are also addressed. Significant contributions to the current state-of-the-art are surveyed taking into account numerous factors. Supply chain performance measures and optimization techniques are also reviewed. Applications of facility location models to supply chain network design ranging across various industries are presented. Finally, a list of issues requiring further research are highlighted.